Bharat Electronics - Q4FY20 First Cut - ICICI Securities

(CMP: Rs. 88; MCap: Rs. 21259 crore)

Bharat Electronics reported decent set numbers for Q4FY20. It reported strong revenue growth of 49.5% while EBITDA margin improved by ~160bps to 25.5%. Order inflows for Q4FY20 and FY20 came in at Rs. 2867 crore and Rs. 13200, respectively.

Q4FY20 Earnings Summary

- The company reported revenues at Rs. 5806 crore, a growth of 49.5% on YoY, above our estimate of Rs. 5671 crore led by decent execution and spillover of few projects from Q3FY20 to Q4FY20

- Absolute EBITDA for the quarter came in at Rs. 1482.6 crore which grew by 59.6% YoY. EBITDA margin improved by ~160 bps on YoY to 25.5% owing decent execution and reduction in other expenses

- PAT grew by 54.7% on YoY to Rs. 1034.5 crore, aided by better execution and lower effective tax rate despite other income decline of 78% to Rs. 28 crore on YoY basis

- Overall, BEL's order book stood at Rs. 51970 crore as on 1st April 2020 while export order book stood at US$ 48.6 mn

- Order inflows for the quarter came in at Rs. 2867 crore. While order inflows for FY20 came in at Rs. 13200 crore with major orders like Akash Missile system (7 Sqdn), Coastal Surveillance system - phase II, upgrade of EW systems mart city business etc

A robust order book provides revenue visibility to the company over the medium-long term. Strong balance sheet gives up reasonable confidence about the continued accelerated trajectory of the company. We would be coming out with a detailed report post interaction with the management.

Shares of BHARAT ELECTRONICS LTD. was last trading in BSE at Rs.88.7 as compared to the previous close of Rs. 88.65. The total number of shares traded during the day was 1012372 in over 6372 trades.

The stock hit an intraday high of Rs. 89.3 and intraday low of 87.3. The net turnover during the day was Rs. 89505157.

Source : Equity Bulls

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