Bharat Electronics Limited- Q2 Results

Last Updated on October 31, 2023 by BFSLTeam BFSLTeam

Introduction

Bharat Electronics Limited (BEL) is an aerospace and defence electronics company owned by the Indian government. The company mainly manufactures advanced electronic products intended for ground and aerospace applications. BEL was established in 1954 in Bengaluru, Karnataka, and is one of the 16 PSUs under the Ministry of Defence of India. Additionally, BEL was granted the status of ‘Navratna’ by the Indian government.

BEL announced its financial results from Q2 FY 2023-24 on October 28th, showcasing impressive operational growth. Here are its performance highlights and the important financial metrics.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Standalone)

• BEL reported a net profit of ₹812.3 Cr during the period under review, up 32.9% YoY from ₹611.05 Cr during Q2 FY 2022-23.
• The company’s EBITDA stood at ₹1,004.3 Cr during the quarter, down sequentially and year-on-year.
• The total income grew by 3.55% YoY at ₹4,163.83 Cr, up from ₹4,020.84 Cr during Q2 FY 2022-23.
• Bharat Electronics’ revenue from operations for the second quarter stood at ₹3,993.3 Cr, up from Q2 FY 2022-23 but falling below the market estimates.

According to an exchange filing, the Government of India-owned Bharat Electronics Limited clocked a net profit of ₹812.3 Cr during Q2 FY 2023-24, registering a 32.9% YoY growth. The net profit also increased sequentially, as the company reported a net profit of ₹530.84 Cr during the first quarter of the fiscal year.

The net profit for the first six months of this fiscal year also increased compared to H1 FY 2022-23. The company reported a net profit of ₹1,343.18 Cr for H1 FY 2023-24, rising 28.8% YoY from ₹1,042.54 Cr during H1 FY 2022-23.

Coming to the company’s revenue from operations, BEL registered a 1.2% YoY growth at ₹3,993.3 Cr, compared to ₹3,945.83.3 Cr during Q2 FY 2022-23. However, it did not match the market expectations, coming in 13.4% below estimates.

Additionally, BEL’s total income during the period under review was ₹4,163.83 Cr, up 3.55% YoY from ₹4,020.84 Cr in the corresponding period last year. Sequentially, it increased from ₹3,652.50 Cr during the first quarter of the fiscal year. In the first six months of FY 2023-24, the company’s total income stood at ₹7,816.33 Cr, an increase of 7.17% from ₹7,293.36 Cr registered during H1 FY 2022-23.

At the operating level, BEL’s EBITDA stood at ₹1,004.3 Cr during the quarter, down from ₹1,012.7 Cr during Q1 FY 2023-24 and ₹1,041.9 Cr during Q2 FY 2022-23.

Management Commentary

Key Announcements

• BEL revealed that it had received orders worth ₹3,000 Cr, including an order worth ₹2,118.57 Cr from Cochin Shipyard.
• The company will supply next-gen missile vessels with state-of-the-art tech to the Indian Navy.

Bharat Electronics Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹7,102.20 Cr	₹7,542 Cr
Total Income	₹7,258.20 Cr	₹7,819.29 Cr
Total Expenses	₹5,923.09 Cr	₹6,075.10 Cr
Profit Before Tax	₹1,335.11 Cr	₹1,744.19 Cr
Profit for the Period	₹990.73 Cr	₹1,328.31 Cr
Total Comprehensive Income	₹1,011.46 Cr	₹1,393.64 Cr

Also Read: Bharat Electronics Share Price

Bharat Electronics Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹3,532.94 Cr	₹4,009.06 Cr
Total Income	₹3,673.17 Cr	₹4,146.12 Cr
Total Expenses	₹2,970.44 Cr	₹3,104.66 Cr
Profit Before Tax	₹702.73 Cr	₹1,041.46 Cr
Profit for the Period	₹538.60 Cr	₹789.71 Cr
Total Comprehensive Income	₹598.23 Cr	₹795.41 Cr

Bharat Electronics Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹7,058.61 Cr	₹7,504.16 Cr
Total Income	₹7,293.36 Cr	₹7,816.33 Cr
Total Expenses	₹5,890.40 Cr	₹6,039.64 Cr
Profit Before Tax	₹1,402.96 Cr	₹1,776.69 Cr
Profit for the Period	₹1,042.54 Cr	₹1,343.18 Cr
Total Comprehensive Income	₹1,063.26 Cr	₹1,408.50 Cr

Bharat Electronics Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹3,510.84 Cr	₹3,993.32 Cr
Total Income	₹3,652.50 Cr	₹4,163.83 Cr
Total Expenses	₹2,948.75 Cr	₹3,090.89 Cr
Profit Before Tax	₹703.75 Cr	₹1,072.94 Cr
Profit for the Period	₹530.84 Cr	₹812.34 Cr
Total Comprehensive Income	₹590.47 Cr	₹818.03 Cr

Stock Performance

Bharat Electronics Limited released its financial results over the weekend (October 28th). On the following Monday, BEL’s shares opened at ₹134.35 and at 1:45 P.M., the share price fell by 0.26% to ₹131.95 apiece on BSE.

About the Company

Bharat Electronics Limited (BEL) manufactures electronic products for Indian defence services and other government organisations in the country. Founded in 1954, it has become a Navratna PSU, and its product portfolio comprises defence communication products, naval systems, and electronic warfare systems, among others. BEL also exports its products to other countries in Asia, Europe, Africa, the Middle East, and North America.

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Sources:

https://www.bseindia.com/xml-data/corpfiling/AttachLive/2171f8b4-668a-47be-9583-a99f8597ccd2.pdf