Bharat Electronics surges 10% on strong Q4 results, hits over 3-year high

Shares of Bharat Electronics (BEL) hit over three-year high of Rs 166.45 after rallying 10 per cent on the BSE in intra-day trade on Wednesday after the company reported a strong set of numbers for the quarter ended March 2021 (Q4FY21). Besides, the company has recommended a final dividend of Rs 1.20 per equity share (120 per cent) of Rs 1 each for the financial year 2020-21.

The stock of the state-owned defence company was trading at its highest level since February 2018. The trading volumes on the counter has seen an over four-fold jump with a combined 57.18 million equity shares changing hands on the NSE and BSE. At 12:34 pm, there were pending buy orders for 1.99 million shares on both the exchanges. In comparison, the S&P BSE Sensex was down 0.18 per cent at 52,496 points.

In Q4FY21, BEL reported 30.7 per cent year on year (YoY) jump in profit after tax (PAT) at Rs 1,352 crore on the back of healthy revenue growth and operational performance. Revenues grew 19 per cent YoY at Rs 6,908 crore, on the back of normalising supply chain and execution business operations. Absolute Ebitda (earnings before interest, taxes, depreciation, and amortisation) for the quarter came in at Rs 1,971 crore, which grew 32.9 per cent YoY. While Ebitda margin came in better than estimated at 28.5 per cent, improving around 300 basis points (bps) YoY.

The company said it has a healthy order book position of Rs 53,434 crore as on April 1, 2021.

“BEL reported a strong all-round performance in Q4FY21 despite a challenging environment. Robust order inflows at Rs 15,280 crore, up 15.8 per cent on YoY and order book at Rs 53,434 crore for the year provide good revenue visibility over the medium to long term. Also, strong balance sheet provides confidence about the continued accelerated business trajectory for the company,” ICICI Securities said in a note.