Bharat Dynamics slips 9% from day's high as investors profit book post Q4

Shares of Bharat Dynamics fell 8.7 per cent at Rs 1,487.25 per share on the BSE from its day's high in Friday’s intraday deals. This came after investors resorted to profit booking on the counter after it witnessed a sharp rise due to a strong earnings show in quarter four of fiscal year 2023-24 (Q4FY24). The share of the company rose 5.3 per cent in the early hours of trading recording the day's high at Rs 1,629.40. 

The defence public sector company on Thursday reported an 89 per cent year-on-year (YoY) surge in net profit, reaching Rs 288.8 crore for the fourth quarter ending March 31, 2024. In the corresponding quarter of FY23, Bharat Dynamics had reported a net profit of Rs 152.8 crore. Its revenue from operations rose by 7 per cent to Rs 854.1 crore compared to Rs 798.3 crore in the year-ago period.

At the operational level, earnings before interest, tax, depreciation and amortisation (Ebitda) surged by 72.6 per cent to Rs 316.5 crore in the fourth quarter of this fiscal, surpassing Rs 183 crore in the corresponding period of the previous fiscal year.

The Ebitda margin for the reporting quarter was 37.1 per cent, an increase from 23 per cent in the fourth quarter of FY23. The board has proposed a final dividend of Rs 0.85 per share (with a face value of Rs 5 each) for the financial year ending March 31, 2024.

On a full year basis, the company’s consolidated revenue dipped by 4.8 per cent YoY to Rs 2,369 crore in FY24 as against Rs 2,289 crore in FY23. The company’s net profit surged by 73.8 per cent to Rs 612 crore versus Rs 352 crore in FY23. 

At 12:25 PM; the shares of Bharat Dynamics were trading 2.23 per cent lower at 1,512.30 per share on the BSE. By comparison the S&P BSE Sensex soared 0.22 per cent. The stock of the company is trading at a price earnings multiple of 58.14 times. Bharat Dynamics is one of India's manufacturers of ammunitions and missile systems