BEL Shares Gain Over 4% As Q1Fy23 Performance Better Than Estimates

BEL Shares in an upbeat market resilient on sound global cues have gained in the pre-opening session to a price of Rs. 249.75, gaining 1.73%.

The company as per ICICI Direct has reported better Q1Fy23 numbers in comparison to the brokerage expectations. This the brokerage said is "likely due to better than expected execution and higher than expected revenue spillover from Q4FY22. EBITDA margin was slightly better than our estimate. However, EBITDA and PAT were also better than expectations on the back of higher-than-expected revenues. Going forward, we believe that, with the healthy order book at Rs. 55,333 crore (~3.3x TTM revenues), strong pipeline of orders (in both defence & non-defence areas) and better margin profile, BEL is well placed to grow its earnings in double digits in the next couple of years".

The company's Q1FY23 revenue grew 90.4% YoY to Rs. 3112.8 crore on the back of lower base and some revenue spillover from Q4FY22 (that was impacted due to chip supply disruption). EBITDA margin improved by 1265 bps to 16.5% (Q1FY22 margin impacted due to high fixed costs as percentage of sales). Subsequently, EBITDA increased sharply by 8.2x YoY to Rs. 513.5 crore. PAT increased
substantially to Rs. 431.5 crore from Rs. 11.2 crore in Q1FY22.

The company's shares gaining over 3% hit day's high price of Rs. 255.5 and is trading very close to its 52-week high price of Rs. 259.5.