InvestorQ : How were the quarterly numbers of defence major, BEL, for the September 2022 quarter?
Arti Chavan made post

How were the quarterly numbers of defence major, BEL, for the September 2022 quarter?

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Rutuja Nigam answered.
1 month ago
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For the September 2022 quarter, Bharat Electronics Ltd or BEL reported 7.7% higher sales at Rs3,962cr o a consolidated basis while sales grew 26.1% on a sequential basis. BEL is engaged in defence systems manufacture and caters predominantly to the Indian defence establishment. BEL is a major beneficiary of the decision of the government to create a positive list where the orders can only be farmed out to the domestic defence sector. During the quarter, Bharat Electronics issued bonus shares in the ratio of 2:1 i.e. 2 shares for every 1 share of BEL.

Bharat Electronics

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 3,961.59

₹ 3,678.05

7.71%

₹ 3,140.61

26.14%

Net Profit (Rs cr)

₹ 623.74

₹ 624.46

-0.12%

₹ 365.65

70.58%

Diluted EPS (Rs)

₹ 0.86

₹ 0.85

₹ 0.50

Net Margins

15.74%

16.98%

11.64%

Let me now turn to the profit performance of BEL. PAT for the September 2022 quarter was absolutely flat at Rs623.7cr and even on sequential terms, the sales were higher by 70.6% on sequential basis. As of the close of September 2022., BEL had an order book position of Rs52,975 crore, which is more than 4 times annualized sales of BEL. Pressure on the margins came from raw material costs spiking 15% yoy due to supply chain constraints putting pressure on the profit numbers. Net profit margins stood at 15.74% in Q2FY23 which is relatively lower compared to 16.98% in Q1FY22 but betters the 11.64% in Q1FY23.

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