Bharat Dynamics up 7% post Rs 2,971 crore deal with Defence Ministry

The company has signed a contract worth Rs 2,971 crore with Ministry of Defence for supply of Astra Mark-I BVRAAMs and associate equipments to Indian Air Force and Indian Navy.

Shares of Bharat Dynamics (BDL) surged 7 per cent to Rs 840.80 on the BSE in Wednesday’s trade, after the company signed a contract worth Rs 2,971 crore with Ministry of Defence, for supply of Astra Mark-I beyond visual range air to air missile (BVRAAMs) and associate equipments to Indian Air Force and Indian Navy.

Earlier, the stock of state-owned aerospace and defence company had hit a record high of Rs 904.95 on April 19, 2022. In the past three months, BDL has outperformed market by zooming 87 per cent, as compared to 1 per cent decline in the S&P BSE Sensex.

BDL is a public-sector enterprise supervised by the Ministry of Defence. The company manufactures surface to air missile (SAM), anti-tank guided missile, torpedoes, and allied defence equipments.

Meanwhile, BDL has the order book position of Rs 10,170 crore as on April 1, 2022 which will be executable over the next 2-3 years. Besides that, the company has received leads for export of AKASH to friendly foreign countries,which is expected to materialize in one to two years.

For the financial year 2021-22 (FY22), BDL reported a robust 94 per cent year on year (YoY) jump in profit after tax (PAT) to Rs 500 crore from Rs 258 crore in FY21. That apart, the company achieved sales turnover of Rs 2,817 crore during the fiscal year and registered a strong recovery of about 47 per cent jump in turnover from Rs 1,914 crore, a year ago.