Bharat Electronics Q3 Results: Net profit likely to jump 20% on better order execution

Bharat Electronics Ltd (BEL) is likely to report a one-fifth increase in net profit to Rs 703.1 crore for the quarter ended December 2022 compared with the corresponding period a year ago, boosted by higher income on the back of better execution in the order book, according to Zee Business research. 

The Bengaluru-based state-run electronics equipment manufacturer — which supplies its products to the defense as well as non-defense markets — will report its financial results for the third quarter of the current financial year on Saturday, January 28. 

The company's quarterly revenue is pegged at Rs 4,026.1 crore, which translates to an increase of nine per cent on a year-on-year basis, according to the research. 

BEL's margin — a key measure of a business's profitability — is estimated to decline by 26 basis points to 22 per cent for the three-month period compared with the year-ago quarter, according to Zee Business research, with 7.2 per cent growth in the company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 881 crore.

According to the research, the contribution of the company's non-defence revenue may increase to 25 per cent from 10-12 per cent over the next 2-3 years.

Analysts will closely look out for any details on the diversification of the company's non-defence business, as part of its strategy.

BEL shares declined one per cent in the December quarter, a period in which headline indices Sensex and Nifty50 rose 5.9 per cent each. 

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