BEL Net Profit Dips 61 Percent in Fourth Quarter, Bharat Electronics Limited Profit Dips in Fourth Quarter, Bharat Electronics Profit Dips 61 Percent, Bharat Electronics Net Profit Dips 61 Percent in Fourth Quarter

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SME Times News Bureau | 28 Apr, 2010
State-run Bharat Electronics Ltd (BEL) posted a net profit of Rs.216 crore for the fourth quarter (January-March) of the 2009-10 fiscal-a 61 percent decline from Rs.559 crore over the corresponding period in the previous fiscal (2008-09), a top company official said Tuesday.

"Provisioning of Rs.166 crore towards wage revision of non-executives during the fiscal under review (FY 2010) impacted our profit margin in the last quarter. The wages, including gratuity, have been hiked after a decade on the government's directive," BEL chairman and managing director Ashwani Kumar Datt told reporters in Bangalore.

Net sales of the defence behemoth also declined 33 percent year-on-year (YoY) during the fourth quarter to Rs.1,834 crore, as lesser orders were executed than in the first three quarters of the fiscal.

Net profit (provisional) for entire fiscal (FY 2010) is Rs.7 crore lower at Rs.740 crore due to higher provisioning for wages.

Profit before tax (PBT) for FY 2010 at Rs.1,086 crore remained flat as against Rs.1,097 crore in the previous fiscal.

Sales, however, grew 13 percent YoY to Rs.5,235 crore, with supplies to defence wings accounting for 83 percent of the total turnover.

New order book for fiscal 2010-11 at Rs.11,350 crore is an increase of 9.2 percent YoY over fiscal 2010 at Rs.10,686 crore.

"We received fresh orders worth Rs.6,000 crore last fiscal, including orders for Central Acquisition Radar (CAR-Rohini) at Rs.2,001 crore, Low Level Transportable Radar (LLTR) at Rs.700 crore and NavyNet at Rs.238 crore," Datt said.

Though exports registered 33 percent growth to $24 million last fiscal, the order book for new fiscal (FY 2011) is encouraging at $71 million.

"We have drawn up a medium-term perspective plan for the period 2009-14.The plan lists challenges, opportunities and strategies to face the current defence business scenario due to increased participation by private firms," added Datt.