State-owned defence manufacturer Bharat Dynamics Ltd demonstrates a significant turnaround with a sixfold rise in quarterly net profits and more than doubled revenues, boosting investor confidence amid a divisive analyst outlook.
Bharat Dynamics Ltd delivered a much stronger first quarter, as the state-owned defence manufacturer reported a steep rise in profit on the back of brisk revenue growth and a return to operating profitability. According to NDTV Profit and LiveMint, consolidated net profit climbed to Rs 119 crore in the June quarter from Rs 18.3 crore a year earlier, while revenue from operations more than doubled to Rs 572 crore from Rs 248 crore.
The improvement was also visible at the operating level. Earnings before interest, tax, depreciation and amortisation came in at Rs 82.8 crore, compared with an operating loss of Rs 45.3 crore in the same period last year, lifting the EBITDA margin to 14.5%. The company has not yet disclosed when it will hold its investor call to discuss the results, according to NDTV Profit.
Investors appeared to welcome the update. Bharat Dynamics shares rose more than 2% on Friday after the announcement, briefly touching Rs 1,406.80 before easing, even as the benchmark Nifty 50 slipped marginally. LiveMint also reported that the stock has an order backlog and that brokerages remain divided on the name: of 14 analysts tracked by Bloomberg, seven rate it a buy, three a hold and four a sell, with the average 12-month target at Rs 1,331.50, implying limited downside from recent levels.
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