PL First Cut – Bharat Electronics (BEL) Q3FY24 Results– Miss on topline, but beat on margins and PAT

PL First Cut – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Bharat Electronics (BEL) Q3FY24 Results First Cut – Miss on topline, but beat on margins and PAT

(CMP: Rs191 | Mcap: Rs1,393bn | Rating: Accumulate)

▪️Standalone revenue rose 0.2% YoY to Rs41.4bn (PLe: Rs48.3bn; consensus estimate: Rs48.5bn).

▪️Gross margin expanded by 682bps YoY to 48.3%. (PLe: 41.0%)

▪️EBITDA grew 23.0% YoY to Rs10.5bn (PLe: Rs.9.6bn; consensus estimate: Rs10.6bn). EBITDA margin increased by 471bps YoY to 25.4% (PLe: 19.8%; consensus estimate: 21.9%), mainly on account of gross margin expansion.

▪️PBT grew 46.5% YoY to Rs11.7bn (PLe: Rs9.5bn; consensus estimate: Rs10.4bn).

▪️PAT jumped 49.2% YoY to Rs8.9bn (PLe: Rs7.1bn; consensus estimate: Rs7.9bn), owing to a strong operational performance, higher other income at Rs2.2bn (vs Rs575mn in Q3FY23) and a lower effective tax rate.

▪️Q3FY24 order inflow came in at Rs116.1bn. Order book stands strong at Rs762.2bn, up 52.1% YoY (4.3x TTM revenue).

The stock currently trades at 34.6x/29.8x FY25/26E earnings.