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Bharat Electronics
Lower than expected headline number
Bharat Electronics reported a provisional turnover of Rs55.5bn in FY11, implying
6%yoy growth and 5% lower than our estimate of Rs58bn. This is also lower than
the MoU target of Rs56bn required to achieve an 'excellent' rating.
! Bharat Electronics reported a provisional turnover of Rs55.5bn in FY11, implying 6% yoy
growth and 5% lower than our estimates of Rs58bn. In a departure from last year’s trend, the
company has not disclosed provisional pre tax profits and order book numbers.
! For 4Q, this implies a turnover of Rs22.7bn, 11% lower than our estimates of Rs25.3bn.
! Revenues are also lower than the target of Rs56bn required to achieve an ’excellent’ rating,
though it is better than the target of Rs53.5bn required for a ’very good’ rating, as per the
Memorandum of Understanding (MoU) it signed with the Ministry of Defence for FY11. The
company has crossed its ’excellent’ target in 11 out of the past 12 years, barring FY08.
! Order book at the end of December quarter was Rs164bn and our discussion with the
management in the middle of the quarter indicates that company expects to end the year with
a c.Rs200bn order book.
! The largest order in recent times has been the order for Akash missiles at Rs36bn. However
BEL is the system integrator for this project and c.60% of the order value would be direct BEL
products and the remaining would be outsourced.
! The company is looking at a possible opportunity of Rs700bn in the next 3 years. Even if half
of it materialises, it would mean orders worth Rs350bn over the next three years.
! Key data point to watch out for would be details in terms of the current order book as well
details of Memorandum of Understanding (MoU) it signed with the Ministry of Defence for
FY12.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Bharat Electronics
Lower than expected headline number
Bharat Electronics reported a provisional turnover of Rs55.5bn in FY11, implying
6%yoy growth and 5% lower than our estimate of Rs58bn. This is also lower than
the MoU target of Rs56bn required to achieve an 'excellent' rating.
! Bharat Electronics reported a provisional turnover of Rs55.5bn in FY11, implying 6% yoy
growth and 5% lower than our estimates of Rs58bn. In a departure from last year’s trend, the
company has not disclosed provisional pre tax profits and order book numbers.
! For 4Q, this implies a turnover of Rs22.7bn, 11% lower than our estimates of Rs25.3bn.
! Revenues are also lower than the target of Rs56bn required to achieve an ’excellent’ rating,
though it is better than the target of Rs53.5bn required for a ’very good’ rating, as per the
Memorandum of Understanding (MoU) it signed with the Ministry of Defence for FY11. The
company has crossed its ’excellent’ target in 11 out of the past 12 years, barring FY08.
! Order book at the end of December quarter was Rs164bn and our discussion with the
management in the middle of the quarter indicates that company expects to end the year with
a c.Rs200bn order book.
! The largest order in recent times has been the order for Akash missiles at Rs36bn. However
BEL is the system integrator for this project and c.60% of the order value would be direct BEL
products and the remaining would be outsourced.
! The company is looking at a possible opportunity of Rs700bn in the next 3 years. Even if half
of it materialises, it would mean orders worth Rs350bn over the next three years.
! Key data point to watch out for would be details in terms of the current order book as well
details of Memorandum of Understanding (MoU) it signed with the Ministry of Defence for
FY12.
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