Bharat Electronics Q3 results preview: Bharat Electronics Ltd (BEL) is set to announce its results for the period ended on December 31, 2024 later today. According to the analysts tracking the counter, the state-run defence player is likely to report a muted set of performance during October-December 2024 period.
Brokerages are expecting Bharat Electronics to report a strong growth in revenue on a year-on-year (YoY) basis, but its Ebitda and net profit are likely to fall on both yearly and sequential basis. Margins are likely to contract up to 1,000 basis points on a quarter-on-quarter (QoQ) basis. Execution, order wins and management guidance for the next quarter shall be the key for the company.
Nirmal Bang Institutional Equities expects Bharat Electronics to report a revenue of Rs 4,907.8 crore, rising 17.9 per cent YoY and 6.6 per cent QoQ. Ebitda is seen at Rs 1,122 crore, increased 4.6 per cent YoY but down 19.9 per cent sequentially, with Ebitda margins contracting to 22.9 per cent. Net Profit is penciled at Rs 831 crore, down 3.3 per cent YoY and 23.9 per cent QoQ.
"During the quarter, BEL secured orders totaling Rs 970 crore for platform screen doors. It obtained orders worth Rs 630 crore from the Ministry of Defence for the upkeep of the Akash Missile System, telescopic sights, communication equipment and electronic voting machines. We uphold a 'hold' rating with a target multiple of 35 times March 2026 EPS," Nirmal Bang said.
Kotak Institutional Equities is factoring in a net sale of Rs 4,869.7 crore, up 17 per cent YoY and 5.8 per cent QoQ. Ebitda is likely to come in at Rs 1,219.9 crore, up 13.7 per cent YoY but down 12.9 per cent QoQ, with Ebitda margins standing at 25.1 per cent, falling 535 bps sequentially. Net profit is seen at Rs 931.4 crore, up 9.8 per cent YoY but down 14.1 per cent QoQ.
"BEL's order inflow growth has been muted at Rs 980 crore in FY25, BEL has just achieved 40 per cent of its FY2025 guidance and clarity on tendering of large orders in 4QFY25 remains key. We expect BEL to report a 27 per cent Ebitda margin for FY25, ahead of its guidance of 25 per cent, largely driven by the strong performance seen in H1FY25," Kotak adds, with a 'sell' rating with a target price of Rs 230.
Shares of Bharat Electronics rose 1.8 per cent on Thursday, to Rs 272 and settled at Rs 267.20 on Wednesday, rising 3.49 per cent for the day. The total market capitalization of the company stood close to Rs 2 lakh crore mark. However, the stock has dropped nearly 22 per cent from its 52-week high at Rs 340.35 hit in July 2024.
Equirus Securities expects BEL to clock in net sales of Rs 5,352.1 crore, up 16 per cent QoQ and 29 per cent YoY. Ebitda is seen at Rs 1,104.6 crore, down 21 per cent QoQ but up 3 per cent YoY, with Ebitda margins contracting about 975 bps to 20.6 per cent for the quarter. Net profit is likely to come in at Rs 864.4 crore, down 21 per cent QoQ, but flat sequentially.
"We estimate a revenue growth driven by a solid OB accretion in recent quarters and seasonality trends. BEL has announced orders of Rs 980 crore this year so far. Q4 is the strongest quarter in terms of both orders and execution. Outlook on FY25/FY26 order intake, ramp up of non-defense and exports businesses, improvement on the working capital front are key things to look for," it said with a 'hold' rating and a target price of Rs 290.
B&K Securities is penciling in a revenue of Rs 5,001.9 crore, up 21.4 per cent YoY and 9.1 per cent QoQ. Ebitda margins are likely to come in at 22 per cent, while net profit is seen at Rs 920.2 crore, up 3 per cent YoY but down 15.7 per cent QoQ. B&K Securities currently has a 'buy' rating on Bharat Electronics.