Bharat Electronics Ltd., the state owned navratna enterprise under the Ministry of Defence, Government of India, meets the specialised need of Indian defence services. It came out with the Financial Results for the Quarter & Year ended March 31, 2011 on April 29, 2011.
Fourth Quarter review- For the fourth quarter ended Mar'11, the total income of the company reported at Rs. 2360.04 crore that increased moderately by 23.27% as against Rs. 1914.5 crore in the corresponding quarter last year.
There was a sharp decline of 75.26% in the stock in trade and WIP (work in progress) to Rs. 13.26 crore indicating improved sales (volume) and inventory turnover. The employee expenses too dropped 25.98% to 290.82 crore. However, the raw material cost escalated 22.61% to 872.73 crore. Similarly, the other expenses including purchase of traded goods increased moderately by 24.71% to Rs. 601.76 crore.
The Profit from Operations before Other Income, Interest & Exceptional Items shot up by 125.08% to Rs. 548.78 crore whilst taking depreciation into account. Other financial expenses also showed a major uptrend with Interest charges rising 38.62% to Rs. 0.2 crore and Tax levy surging 105.96% to Rs. 177.96 crore.
After adjusting all the financial expenses, the net profit reported at Rs. 448.25 crore showing impressive two-fold increase from Rs. 199.75 crore in corresponding quarter last financial year. Consequently, the NPM jumped a whopping 818 basis points to 18.39%. EPS increased more than two -fold (124%) to Rs. 56.03 as against Rs. 24.97 in the corresponding quarter previous fiscal.
Fiscal year review- For the fiscal year ended Mar'11, the total income of the company increased marginally by 4.72% to Rs. 5635.11 crore from Rs. 5380.96 crore in the corresponding period last year. A 330.47% jump in the stock in trade and WIP to Rs. 64.78 crore probably indicated poor inventory turnover.
The stock pile may have prompted the firm to cut back on the raw material consumption which came down 9.03% to Rs. 2106.34 crore. While the employee expenses remained flat at Rs. 1045.03 crore, the other expenses including purchase of traded goods increased significantly by 32.64% to Rs. 1415.54 crore.
The Profit from Operations before Other Income, Interest & Exceptional Items shot remained flat at Rs. 881.51 crore whilst taking depreciation into account. Tax expenses remained almost same at Rs. 319.82 crore. There was a significant slump in the interest charges by 35.51% to Rs. 0.35 crore.
Moreover, an expenditure of Rs. 31.35 crore on exceptional items in previous fiscal was observed. These primarily accounted for the moderate increase in the net profit by 11.58% to Rs. 804.34 crore despite unimpressive top-line growth. Thus, the NPM rose by 71 basis points to 13.68%. EPS increased moderately by 11.5% to Rs. 100.54 as against Rs. 90.11 in the previous fiscal.