Bharat Electronics (BEL) slumped 7.69% to Rs 93 after consolidated net profit fell 56.8% to Rs 222.68 crore in Q3 December 2019 over Q3 December 2018.
"The profit for the current period is lower mainly due to lower sales realisation coupled with low margins on projects executed during the current period due to high material content. The profitability position is expected to improve in the last quarter of FY 2019-20 on higher sales realisation," BEL said after market hours yesterday, 30 January 2020.Consolidated profit before tax (PBT) for Q3 December 2019 stood at Rs 298.27 crore, down by 57.5% from Rs 702.60 crore reported in Q3 December 2018. Tax expenses declined 56.8% to Rs 85.74 crore in Q3 FY20 from Rs 198.45 crore posted in Q3 FY19.
Net sales declined 18.4% to Rs 2182.72 crore in Q3 December 2019 over Q3 December 2018. The company said that turnover in respect of some major projects could not materialise due to factors like obsolescence in input material, modification in scope of work, non readiness of sites for carrying out installation activity and lengthy process for customer clearance. Turnover in respect of these projects is expected to be realised in the next quarter of FY 2019-20.
BEL's order book as of 1 January 2020 stood at Rs 54959 crore while orders received during Q3 December 2019 stood at Rs 1260 crore.
Bharat Electronics is a state-owned aerospace and defense company with about nine factories, and several regional offices in India. It primarily manufactures advanced electronic products for the Indian Armed Forces. The Government of India held 55.27% stake in the company as on 31 December 2019.
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