Q2 2025 Bharat Electronics Ltd Earnings Call Transcript
Key Points
- Bharat Electronics Ltd (BOM:500049) reported a 15.83% increase in turnover for Q2 FY25, reaching INR8,530 crore compared to INR7,365 crore in the previous year.
- Profit before tax rose by 40.05% to INR2,488 crore, and profit after tax increased by 39.03% to INR1,867 crore.
- The company's EBITDA margin improved to 27.26% from 22.66% in the previous year.
- Earnings per share increased to INR2.55 from INR1.84, indicating strong shareholder returns.
- The order book as of October 1, 2024, stands at INR74,595 crore, showcasing a robust pipeline of future projects.
- Operating cash flow was negative at INR2,300 crore due to a substantial rise in debtors and inventory, raising concerns about cash management.
- The company is facing challenges in managing working capital, with a current ratio of 1.6, which has been consistent over the past few years.
- There are delays in receiving large orders, such as the 3D radar and electronic warfare projects, which could impact future revenue targets.
- The company is experiencing some supply chain challenges, particularly with smaller items, which could affect turnover.
- Despite strong margins, the company maintains a conservative gross margin guidance of 42% for FY25, indicating potential pressure on profitability.
Ladies and gentlemen, good day, and welcome to the Bharat Electronics Limited Q2 FY25 earnings call hosted by Nomura Financial Advisory and Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Umesh Raut from Nomura. Thank you and over to you, sir.
Thanks Steve. Good afternoon everyone. On the behalf of Nomura, we welcome you all for the Q2 FY25 conference call of Bharat Electronics Limited. I take this opportunity to welcome the Management of Bharat Electronics represented by Shri Manoj Jain, Chairman and Managing Director; Shri Dhamodar Bhattad, Director of Finance and CFO; Shri Srinivas, Company Secretary. I'll now hand over the call to the company Management for their opening remarks. Thank you.
Yes, good morning. Good afternoon
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