- 02 Apr 2024
- ICICI Securities
BDL REPORTED 5.6% YOY DECLINE IN FY24 REVENUE; BELOW ESTIMATES
BDL - 1842 Change: 35.50 (1.97 %)News: Bharat Dynamics (BDL) has recorded revenue of ~Rs 2350 crore (provisional and unaudited) for FY24, registering a de-growth of 5.6% YoY. The company has highlighted that the reasons for reduction in revenue is mainly on account of current geopolitical situation prevailing in Europe and Middle East which has affected the supply chain of the company. The order book position of the company stands at Rs 19468 crore as of Mar-24 end
Views: Revenue de-growth of 5.6% YoY in FY24 is below our expectations. Implied revenue growth for Q4FY24 is 4.5% YoY. Revenue de-growth for the full year is primarily because of the sharp revenue decline witnessed in Q1FY24 on account of supply chain issues. Though execution has improved over the last three quarters, overall revenues for FY24 has been much lower than management's earlier guidance. However, order backlog of Rs 19468 crore (8.3x FY24 revenue) provide strong revenue visibility in the coming period. Orders pipeline also remains strong (in both domestic and exports) for missiles, torpedoes and CMDS.
Impact: Neutral