Bharat Electronics (BEL) has announced strong provisional numbers for FY17 with a 17 percent growth in revenues and that beats their own guidance.
In an interview to CNBC-TV18, MV Gowtama, CMD of BEL spoke about the provisional numbers and his outlook for the company.
Below is the verbatim transcript of the interview.Latha: This is a handsome beat and better than your own expectations or your own guidance.A: Certainly. The market was looking for us to perform much better and we were able to deliver.
Latha: Will margins also be as good as the revenue is indicating?A: We are also maintaining the margins at this point of time. The accounts will be settled in a week-ten days time and we will be having the final figures with us, but whatever we predicted we have growth in EBITDA.
Sonia: What is the order flow currently?A: We got about Rs 7,000 crore order before March 31, 2017. Today we are standing on an order book of more than Rs 40,000 crore.
Sonia: For FY17 you had an order inflow guidance of about Rs 13,000 crore, right?A: We have exceeded that. We have about Rs 16,000 crore plus order acquisition.
Sonia: Do you have any target for FY18?A: It will be in the similar lines. We will be more than Rs 13,000 crore order acquisitions even in the present year.
Anuj: In terms of order pipeline, how are things looking up for FY18. Could you give us some number, any major projects that you are looking at?A: Major is going to be Akash seven squadrons. We are expecting this by the Q1, June and that will be about Rs 7,000 crore. We have a large electronic warfare (EW) system upgrade and that will be about Rs 2,000 crore order book and apart from this there are other equipment order which will take us to about Rs 13,000 crore order.
A: We are allowed to have 12.5 profit margins by government, as per their guidelines but based on our efficiency factor the profitability goes up. So certainly we will be maintaining EBITDA to turnover ratio of 17-18 percent easily.
Latha: Given the kind of order book you have, this run rate revenue growth of 15-17 percent is maintainable for FY18?A: It will come down little but certainly we will be touching towards that.
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