Partner's non-supply of missile inputs dents bottomline
Bharat Electronics Ltd's fourth quarter net profit declined 25.5 per cent year-on-year to Rs 333.84 crore (Rs 448.25 crore).
Total income for the quarter was flat at Rs 2444.5 crore (Rs 2437.66 crore)
Unaudited net profit for the full year was down 12 per cent y-o-y to Rs 756.3 crore (Rs 861.46 crore). Income increased 8 per cent to Rs 6342.53 crore (Rs 5866.89 crore)
The board on Wednesday deferred a proposal to consider buyback of shares.
The market was expecting a buy back price of Rs 1,700 a share. With no announcement regarding the price, the stock fell at noon from the day's high of Rs 1,520 to Rs 1,471 a share. However, the counter recovered to close at Rs 1480.85 to a share, up 0.9 per cent over the previous close. The news of deferral of buyback came in after market hours.
At the annual news conference on Tuesday, Mr Anil Kumar, Chairman and Managing Director, admitted that a partner's non-supply of Akash missile system inputs had mainly dented the company's bottomline. He did not name the partner.
BEL as the lead integrator delivered to the IAF only 15 of the 96 missiles or two squadrons by the end of the financial year. That brought down revenue and net profit.
The share of defence products in the revenue also fell to 73 per cent against 81 per cent in the previous year.
The technical snag in parts supply has been rectified, he said. Missile supplies would be completed by the year-end. The defence PSU would end this fiscal with revenue of Rs 6,300 crore.
BEL and another public sector company Bharat Dynamics Ltd of Hyderabad are partners in delivering the missile systems to the IAF and the Army. (BDL is the lead integrator of Akash missiles for the Army order.)
The order covers radars, control devices and launchers or vehicles. These are split among BEL, BEL and two lead industries - a Tata group company and L&T.
BEL will get Rs 3,125 crore from the medium-range, surface-to-air Akash missile system for the Army. The order for the coastal radar network, called the Coastal Surveillance System, amounts to Rs 602 crore. The tablet PCs for the Rural Development Ministry's Socio Economic and Caste Census earns it Rs 542 crore.