Bharat Electronics Oct-24

Bharat Electronics Limited Q2 FY25 Earnings Conference Call

• Date: October 28, 2024
• Call hosted by: Nomura Financial Advisory and Securities
• Management: Manoj Jain (Chairman and Managing Director), Damodar Bhattad (Director Finance and CFO), Sreenivas S (Company Secretary)
• Moderator: Umesh Raut
• Key financial highlights:
  • Turnover: INR2,853.0 crores (Q2 FY25) vs. INR7,365 crores (Q2 FY24), a growth of 15.83%
  • Profit before tax: INR2,488 crores (Q2 FY25) vs. INR1,777 crores (Q2 FY24), a growth of 40.05%
  • Profit after tax: INR1,867 crores (Q2 FY25) vs. INR1,343 crores (Q2 FY24), a growth of 39.03%
  • EBITDA: 27.26% (Q2 FY25) vs. 22.66% (Q2 FY24)
  • Earnings per share: INR2.55 (Q2 FY25) vs INR1.84 (Q2 FY24)
  • Order book position (October 1, 2024): INR74,595 crores

Order Inflows

• Target for FY25: INR25,000 crores
• First-half order inflow: INR7,500 crores
• Major expected orders for FY25:
  • Ashwini Radar: INR2,500 crores
  • Electronic Warfare Suite for MI-17: INR2,000 crores
  • ATULYA Order: INR2,000 crores
  • Shakti Phase IV: INR2,000 crores
• Management expressed confidence in achieving the FY25 target.

Working Capital

• Negative operating cash flow due to increased inventory for second half of year.
• Inventory stands at approximately INR9,000 crores.

Financial Year 25 Objectives

• Management expressed positive outlook for next year's performance.
• Current objectives include exceeding this year's turnover & profit margins.

Other Key Topics

• SBU Expansion (SBUs(Strategic Business Units) now numbers 29)
• Naval orders
• Artillery systems
• Foreign collaboration ratio stands at 15%
• Export focus & objectives (exports to reach 10% in coming years)
• Manpower planning (Hiring of 1,000+ employees)
• Defense budget outlook is continually positive.
• Order booking of INR75,000 crores

Join us for an in-depth analysis of Bharat Electronics Limited's Q2 FY25 earnings conference call. Learn about key financial highlights, including significant growth in turnover, profit before tax, and earnings per share. Get insights on order inflows and the company's future targets for FY25.