AI-generated · cited to primary sources · not investment advice
Bharat Electron (500049) May 2023 Filing Analysis
Does management do what it says?
The company reported an EBITDA margin of 25.22% for FY 2023-24, surpassing the guided range of 21% to 23%. (5 exceeded across 5 tracked commitments)
“We expect to maintain the EBITDA margin around 21% to 23%, in the coming year, ‘23, ’24, because there are different product mix, which are there.”
The current non-defense mix is 14%, aligning closely with the long-term target of 15%. (1 met across 1 tracked commitment)
“First, I will answer around 85/15 is the typical we are expecting this year. But it has been hovering around from 80/20 to 90/10 depending upon which year we get more civilian products”
BEL acquired its highest-ever order inflow of INR 35,000 crores in FY 2023-24, significantly exceeding the guidance of INR 20,000 crores plus. (2 exceeded, 3 in progress across 5 tracked commitments)
“It will not be a problem because what order booking we are projecting in this financial year is INR20,000-plus crores, which is not factoring many big ticket programs which are in pipeline.”
Management confirmed a target of USD 90 million for the year, having achieved approximately USD 10 million (INR 87 crores) in Q1. (3 in progress, 2 met across 5 tracked commitments)
“This year we are targeting around $90 million to $100 million. We are participating in various programs, various discussions with customer, going as a part of government delegation also to make sure that we get significant export order.”
Management confirmed that R&D expenditure will continue to be around 6% to 7% of revenues for the current year. (2 in progress, 1 missed, 1 exceeded across 4 tracked commitments)
“And this year likely, expenditure will be around INR700 crores to INR800 crores in capex.”
See the full cited Management analysis of Bharat Electron
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