BEL Q4FY23 net profits up 19.7% yoy at Rs1,382 crore on operating boost from lower material costs

Bharat Electronics (BEL) reported 2.20% growth in revenues for the March 2023 quarter on consolidated basis at Rs6,479cr. Revenues were up 56.01% sequentially, but that is more due to the cyclicality of the order flow. For FY23, the sales revenues were up 15.2% at Rs17,333 crore, more reflective due to cyclical flow of orders. The order book position of the company as of April 2023 stands at Rs60,690 crore; or nearly 4 years of current sales.

Full year net profits for FY23 were up 24.4% at Rs2,985 crore. For the fourth quarter, much of the profit boost came from the sharply lower raw material costs, which led to boosting the operating profits by 16.75% for the year at Rs1,718 crore. Net Profits grew 19.7% yoy as the operating profit advantage rubbed off on the bottom line. Cash from operations dropped by nearly 70% yoy for FY23 due to spike in trade receivables in FY23.

Financial highlights for Mar-23 compared yoy and sequentially

For the fourth quarter, BEL saw operating margins expand from 23.21% to 26.51% yoy while the net profit margins expanded from 18.21% to 21.33% yoy. The company has declared dividend of Rs0.60 per share on revised face value of Rs1 per share.