State-owned aerospace and defence electronics manufacturer Bharat Electronics Ltd (BEL) is likely to report decent revenue growth in the quarter ended June 2023, driven by order wins and healthy execution.
According to an average of three brokerage firms, BEL’s standalone revenue is likely to grow by 13 percent YoY to Rs 3,506.3 crore, whereas net profit growth could be largely subdued. Profit after tax is seen increasing merely three percent on year to Rs 442.4 crore, as per the poll conducted by Moneycontrol.
The company is slated to announce its quarterly numbers on July 27.
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Order book
The June quarter witnessed a strong influx of new orders, with BEL securing orders worth Rs 8,100 crore. These orders encompass the Akash weapon system (Rs 3,900 crore) from Bharat Dynamics, the long-range guidance kit (Rs 2200 crore), and other substantial orders (Rs 2000 crore).
The PSU defence company’s order book as of FY23-end stood at Rs 60,700 crore.
Kotak Institutional Equities sees revenue growing 12 percent on year on high YoY base against the revenue guidance of more than 15 percent growth for the full year.
The company had guided for a revenue growth of 15 percent and operating margin of 21-23 percent for FY23.
Meanwhile, Incred Equities anticipates a 13 percent year-on-year sales growth, mainly attributed to higher execution of substantial orders and the resolution of supply chain challenges. However, the growth in profit after tax is projected to be subdued as an extraordinary dividend boosted the profit after tax in the first quarter of FY23, it added.
Key monitorables
Management commentary on the order pipeline and working capital requirement are some of the key monitorables.
Further, the commentary by BEL on status of key orders such as Quick Reaction Surface to Air Missile, Long-Range Surface-to-Air Missile, naval system among others will also be keenly watched.
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