Bharat Electronics Limited (BEL) has reported a year-on-year increase of 33% in its net profit for Q2FY24, reaching ₹812.3 crore up from ₹611 crore in the previous fiscal year. This comes despite a minor dip in the company's stock, which opened at ₹132.75 and decreased by 0.3% to trade at ₹131.75 later on Monday.
The company's Q2 revenue saw a modest growth of 1.2%, totaling ₹ 3,993 crore. While this fell short of street estimates, it still marked a positive growth for the firm. The EBITDA rose by a substantial 17.45% to reach ₹1,004.3 crore and the margin improved by an impressive 350 basis points to hit 25.2%.
For the fiscal year of 2023-2024, BEL secured orders worth ₹14,384 crore. This includes a significant order received in early September from Cochin Shipyard worth ₹2,118.57 crore for next-generation missile vessels for the Indian Navy. Additionally, an ₹886-crore (INR100 crore = approx. USD12 million) order was secured for upgrading AFNET SATCOM N/W and Akash Missiles with an Inertial Navigation System, along with additional orders for accessories and spares.
InvestingPro Insights
Looking at real-time data from InvestingPro, Bharat Electronics Limited (BEL) has a market capitalization of $11536.93 million and a P/E ratio of 29.01, indicating a strong valuation. Additionally, the company has seen a revenue growth of 6.72% over the last twelve months as of Q2 2024, with gross profit margins standing at an impressive 44.47%.
InvestingPro Tips further highlight BEL's strengths. The company yields a high return on invested capital and has consistently increased its earnings per share. Notably, BEL has maintained dividend payments for 23 consecutive years, showcasing its commitment to rewarding shareholders. Furthermore, the company operates with a moderate level of debt and its liquid assets exceed short term obligations, indicating a healthy financial position.
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