- 31 Jan 2022
- ICICIdirect Research
BEL reports mixed set of numbersBEL - 118 Change: 0.00 (0.00 %)
News: Bharat Electronics reported a mixed set of numbers for Q3FY22. Despite revenue miss the EBITDA margins came in line with estimates, which led to a healthy growth in PAT as well. Revenues at Rs.3693.7 crore, up 60% YoY. Absolute EBITDA for the quarter came in at Rs.822.1 crore, which grew 86.7% YoY. However, EBITDA margin came in at 22.3%, which was in line with our estimate of 22.4%. Key impact on margins came in from lower than expected other expenses which came in at Rs.167.5 crore vs. estimates of Rs.308.8 crore. PAT came in at Rs.583.4 crore, up 122.8% primarily on account of better EBIDTA and higher other income which came in at Rs.59.3 crore. BEL’s order book was at Rs.56568 crore as on Q3FY22.
Views: BEL’s overall outlook in the medium term to long term look quite promising. Given the 9MFY22 performance, we believe BEL in on track to meet its guidance for FY22 and beyond. Given the uptick in defence spending in the medium term amid focus on indigenisation of defence production, BEL will be a key beneficiary of the same.