Bharat Dynamics falls 4% after a sharp rise as investors take profit after the fourth quarter

Shares of Bharat Dynamics fell 3.8 percent to Rs 1,487.25 per share on the BSE in Friday’s intraday trades. This came after investors resorted to profit booking on the counter after witnessing a sharp rise on the back of strong earnings in the fourth quarter of fiscal 2023-24 (Q4FY24). The company’s stock rose 5.3 percent in early trading hours to record a day’s high at Rs 1,629.40.

The public sector defense company on Thursday reported an 89 percent year-on-year increase in net profit, reaching Rs 288.8 crore for the fourth quarter ended March 31, 2024. In the corresponding quarter of FY23, Bharat Dynamics had reported a net profit of Rs 152.8 crore. Operating revenue rose 7 percent to Rs 854.1 crore, compared to Rs 798.3 crore in the year-ago period.

At the operating level, earnings before interest, taxes, depreciation and amortization (Ebitda) rose 72.6 percent to Rs 316.5 crore in the fourth quarter of this fiscal, surpassing the Rs 183 crore in the corresponding period of the previous fiscal year exceeded.

Ebitda margin for the reporting quarter was 37.1 percent, up from 23 percent in the fourth quarter of FY23. The board has proposed a final dividend of Rs 0.85 per share (of face value of Rs 5 per share) for the financial year ending March 31, 2024.

On a year-on-year basis, the company’s consolidated revenue declined 4.8 percent year-on-year to Rs 2,369 crore in FY24, against Rs 2,289 crore in FY23. The company’s net profit rose 73.8 percent to Rs 612 crore versus Rs 352 crore in FY23.

At 12:25 p.m.; Shares of Bharat Dynamics were trading 2.23 per cent lower at 1,512.30 per share on the BSE. In comparison, the S&P BSE Sensex rose 0.22 percent. The company’s shares trade at a multiple of 58.14 times earnings. Bharat Dynamics is one of India’s manufacturers of ammunition and missile systems

First print: May 31, 2024 | 12:34 pm IST