Defence PSU Bharat Dynamics Ltd (BDL) on Thursday declared an interim dividend of 4 per share for FY25. It fixed February 14 as the record date for the purpose of payment of interim dividend. Along with the dividend announcement, the company reported a 9 per cent year-on-year (YoY) rise in standalone net profit at Rs 147.12 crore for the December quarter compared with Rs 135.03 crore in the corresponding quarter last year.
Revenue from operations grew 34 per cent to Rs 799.28 crore compared with Rs 596.34 crore in the same quarter last year.
BDL's Q3 profit came in lower than Elara Securities' estimate of Rs 179.10 crore. Following the results and dividend announcements, the stock was trading 0.58 per cent lower at Rs 1,208.15 on BSE.
"We wish to inform that the Board of Directors in its meeting held on 06.02.2025 has declared Interim Dividend for the Financial Year 2024-25 at Rs. 4 per share of the face value of Rs 5/- each. The Company has fixed 14 February, 2025 as “Record Date” for the purpose of payment of Interim Dividend on equity shares for the Financial Year 2024-25," BDL informed stock exchanges.
BDL is a regulator dividend payer. In FY24, it announced a total dividend of Rs 10 per share, amounting Rs 162.20 crore. It declared dividend of Rs 9.35 per share in FY23, Rs 8.30 per share FY22 and Rs 7.35 per share in FY21.
On Q3 results, BDL said it conducted an assessment of its customer contracts during the December quarter. This included a specific contract aimed at gaining exposure to the niche technology in the global defence industry. This contract presents opportunities for the company to become part of global supply chain partner of a leading defence manufacturer.
"These opportunities are not immediate and are expected to materialise in the future. The company thus classified this contract as an onerous contract in accordance with Ind AS 37 — Provisions, Contingent Liabilities and Contingent Assets, and accordingly the company had recognised a provision of Rs 134.61 crore in the financial statements for the quarter and nine months ending 31 December 2024. The company will continue to evaluate these contracts periodically and adjust provisions as necessary in subsequent reporting periods," BDL said.
The defence PSU said its inventories include Rs 83.38 crore, which are non-moving for more than 5 years, procured by the company based on firm orders/LOI that were subsequently short closed by the customer.