Bharat Electronics's fourth quarter profit after tax is expected to fall 11.7 percent year-on-year to Rs 586 crore, according to a CNBC-TV18 poll. Total income is seen declining 8 percent to Rs 2,880 crore from Rs 3,131 crore during the same period due to customer led execution delays.
Operating profit may slip 15.4 percent year-on-year to Rs 650 crore and margin may decline 190 basis points to 22.6 percent in Q4FY15, led by lower utilisation rate and lower execution.
State-owned aerospace and defence company already reported FY15 flash/provisional results in April, so these numbers are more of implied figures.
Analysts expect working capital requirements to remain high due to the liquidity crunch for small sub-contractors/suppliers and lower advances from customers. Company has an order book of Rs 22,100 crore.
They fell few big orders like integrated air command and control system (worth Rs 7,000 crore), electronic warefare systems (Rs 6,000 crore), Akash missile (Rs 4,000 crore) may help improve order flow significantly over the next 2 years.
Key issues to watch out for
Revenue growth as key orders like Akash Missile (intake Rs 6,700 crore in FY11/12) are currently under execution for both the Army and Air Force
Company operates at 6 percent capacity utilisation and there exists possibility of a strong operating leverage.
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