Up 129% in 1 year; this Navratna PSU to soon declare Q4 results; here’s what to expect

Bharat Electronics Limited (BEL), the Navratna PSU, is scheduled to report its Q4FY24 earnings on May 20, together with the final dividend for the fiscal year 2023-24. Zee Business research desk estimates the aerospace and defense major to report a good set of results for the January-March quarter. Standalone PAT at the company is seen at Rs 1,490 crore, up 9 per cent on-year versus Rs 1,365 crore during the same period last fiscal.

The company’s standalone revenue for the reporting quarter is seen to soar 30.4 per cent on-year given the improved order execution and robust order inflow. The desk sees revenue coming in at Rs 8,417 crore as against Rs 6,457 crore reported in the same period last year.

BEL’s Q4 standalone EBITDA or  earnings before interest, taxes, depreciation and amortisation, a profitability metric, is expected to rise 8 per cent year-on-year (YoY) to Rs 1,969 crore, in comparison to Rs 1,825 crore in Q4FY23. Nevertheless, margins at the state-run entity are likely to be pressured due to the high base of the previous year and come in at 23 per cent. The same was reported at 28.3 per cent in the March quarter of FY23.

BEL’s FY24 order book

As against the guidance of Rs 20,000 crore order book in FY24, the company’s order book was at Rs 35,000 crore, up 70 per cent on a YoY basis. So, now as the order inflows have already surpassed the initial guidance, their execution will be on radar.

Key watch-outs

The stakeholders will watch out for the company’s outlook on order inflows and in particular the commentary in respect of its Quick Reaction Surface to Air Missile (QRSAM) programme. Furthermore, investors will keep an eye on the company’s non-defense as well as export business, in addition to its update concerning order flow post-elections.

BEL’s share price performance 

Shares of the public sector undertaking over the past one year have yielded 129 per cent return.