Bharat Electronics is a Bangalore based PSU, under the Ministry of Defence. It provides all the specialized electronic needs of the Indian defence services.

The company has posted a fantastic set of numbers for Q1FY18. On a 94% (YoY) jump up in total operating revenue at Rs.1803 crore, the company posted a jaw dropping 247% increase in net profit at Rs.125 crore. Higher topline and lower base effect, both helped turn in this super bottomline.

EBITDA was at Rs.163 crore while margins expanded from a negative 4.4% to 9.5%.

Almost debt free (interest outgo in Q1 was at Rs.26 lakh), the  company is expected to do well in the coming days, given the Govt’s drive for indigenisation in defence. And the current performance goes on to show that it does have the ability to execute and we could see more improvement in the numbers as orders get firmed. The Govt of India holds 75.01% stake and LIC holds 5.95%. Equity stands at Rs.223 crore (face value Re.1).