Bharat Electronics Ltd Q3 FY2023 Concall Summary

Source transcript PDF: https://www.stockscans.in/document/uajedxgnfklqp02ygvtk9wj3.pdf

Key Takeaways


Order Inflow & Pipeline

Srivastava: "Close to that it should happen we are working on that."

Revenue Growth & Outlook

Srivastava: "This year we have given a guidance of 15% plus and next two years definitely it will be much better than 15% plus, our target is somewhere closer to 20%."

Margins & Costs


Diversification & New Business

Bhattad: "We feel that ratio of defence to civil in the next four, five years continued to be in the range of 75:25 or 80:20 like that defence would be always in the main sum and 20 to 25 maximum will be civil not more than that in the coming four, five years."

Capacity & Infrastructure Build-Out

Srivastava: "I can only say that BEL is a technology driven company and we are very few company in the country where we invest heavily on research and development. If you see our results 7% plus of our turnover we spend on R&D. We have a very strong R&D base and that is how we are able to maintain our growth and profitability."

Programme Status & Competitive Landscape

Srivastava: "If some specific detail is leaked out I do not think it will have any impact on that because the technology behind the radar which is more important and what is the software, how you have addressed that, what is that, that I do not think anybody will be able to give or that information we provide to anybody, design parameters or design details based on which this radar is manufactured it is never shared to anybody outside."

Guidance & Commitments

CommitmentSpecificsTimeline
FY23 order inflowClose to ₹20,000 CrBy March 2023
FY24–FY25 revenue growth"Closer to 20%" (precise figure after FY23 results)FY24 and FY25
Gross marginsAround 40% levelFull year FY23
Margin maintenanceMaintain current margins going forwardOngoing
Defence-to-civil mix75:25 to 80:20 rangeNext 4–5 years
Services revenue share10–12% of turnoverOngoing
Annual capex₹600–800 Cr rangeNext few years
Nimmaluru factory operationalStart workingMay–June next year (CY2024)
QRSAM order fructificationFirst packageFY24
QRSAM second packageSecond packageFY25
EVM/VVPAT existing order executionComplete executionBy August FY24
Long-term order inflow growth15–20% annual growthBeyond FY24

Key Metrics

MetricQ3 FY23
Turnover (9M FY23)₹11,005 cr, +24.46% YoY vs ₹8,842 cr
PBT (9M FY23)₹2,203 cr, +35.07% YoY vs ₹1,631 cr
PAT (9M FY23)₹1,641 cr, +35.97% YoY vs ₹1,207 cr
EBITDA margin (9M FY23)20.20%, up from 19.69% YoY
EPS (9M FY23)₹2.25, vs ₹1.65 YoY
Gross margin (9M FY23)~40%, flat YoY; full year expected at similar level
Order book (as of Jan 1, 2023)₹50,116 cr
Order inflow (9M FY23)~₹3,600 cr; FY23 guidance retained at close to ₹20,000 cr
FY24 revenue growth guidance15% to 20%, target closer to 20%
FY23 revenue guidance₹17,000 cr plus
Service revenue share (9M FY23)~10% of turnover, ~₹1,000 cr; expected to stay 10–12% on growing base
Order backlog mix~80% defence, ~20% civil
Nomination-based contracts share75% to 80% of current-year revenues
Export order book~₹2,000 cr
Capex (FY23)~₹600 cr; annual run-rate expected at ₹600–800 cr
R&D spend7% plus of turnover