BEL

Bharat Electronics is a Bangalore based PSU, under the Ministry of Defence. It provides all the specialized electronic needs of the Indian defence services. Currently, the Govt holds 74.41% stake in the company.

The company has done well for Q3FY17. On a 33% (YoY) rise in net sales at Rs.2091 crore, it posted a similar 33% jump in net profit at Rs.373 crore. Thanks to the rise in topline, the company could show the increase in bottomline or else, given the increase in costs all across, it could have been a tough quarter.

In terms of costs, there was a 47% rise in raw material costs, 28% rise in overall operating costs, 41% drop in other income, interest outgo rising from Rs.14 lakh to Rs.11 crore and tax increasing 47%. EBITDA for the quarter came in at Rs.483 crore, up 74% and margins showed a rise from 17.31% to 22.05%.

The company declared the Govt stipulated minimum dividend of 30% (FV of Rs.10) and is also splitting the shares to Re.1 FV per share.