News: Bharat Electronics (BEL) reported revenues at Rs.3660.5 crore, up 14.8% on YoY. Absolute EBITDA for the quarter came in at Rs.856.4 crore, up 37.4% YoY while EBITDA margin came at 23.4%. Consequently, PAT came in at Rs.612.6 crore, up 54.3% YoY. Overall, BEL’s order book was at Rs.54627 crore as on Q2FY22.
Views: Though BEL's execution bounced back strongly, the key beat came in EBITDA margins front, which eventually led to PAT beat. BEL’s overall outlook in the medium term to long term look quite promising. We believe BEL’s H2FY22 will be quite robust with strong execution pick up, maintaining higher margins and recording decent inflows, which will improve future outlook. Also, a debt free balance sheet and cash flow generation characteristics are a structural advantage for the company.
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