Bharat Electronics report dismal Q3FY20 numbers; stock plummets

In the third quarter of FY20, Bharat Electronics Ltd (BEL) reported disappointing numbers across the board.

Its revenue from operations dipped nearly 18 per cent YoY to Rs 2,179 crore in Q3FY20. This was mainly on account of weak order execution due to various projects level issues.

EBITDA for the quarter plummeted nearly 54 per cent YoY to Rs 354.7 crore with a corresponding margin contraction of 1,266 bps. EBITDA margin for Q3FY20 stood at 15.62 per cent. This was due to weak sales number and higher input costs.

Due to a weak performance, top-line and operating level, the company’s PAT fell nearly 58 per cent to Rs 215.1 crore from Rs 507.6 crore in Q3FY19. PAT margin for the quarter too deteriorated to 9.47 per cent.

The company in its exchange filing said that the profitability position is expected to improve in Q4FY20 on higher sales realisation. The order book position of the company as on Q3FY20 stood at Rs 54,959 crore.

Besides, the company has detected fraud by the employees during the routine internal audit which was estimated to be Rs 10 crore, for which the company has made necessary provisions. The company further said that the matter is under investigation.

Reacting to this, the stock of BEL plummets on the bourses as much as 10 per cent to touch the intraday low of Rs 90.70 apiece.