Bharat Electronics found the market's favour today after it came out with cheering provisional results, suggesting a 32% rise in turnover.
The scrip of the state-run electronic components maker leaped up by 4.81% to Rs 193 on BSE by 12:10 IST. Huge volumes of 56,068 shares were registered on the counter on BSE by then. The scrip of Bharat Electronics (BEL) has now risen 7.2% from Rs 180.05 on 31 March 2003. Prior to that, between 22 and 31 March 2003, the stock lost 7.4% from Rs 194.50.
The buying on the counter manifested sheerly because of the impressive provisional results declared by the company. The company said it turned out its highest turnover ever at Rs 2,750 crore (Rs 1,942 crore) for FY 2002-03, a 32% rise. While net profit has been estimated at Rs 395 crore (Rs 285 crore).
BEL has a strong order book position - Rs 4,131.3 crore as of 31 March 2002, 38% higher than the Rs 2,995 crore as on 31 March 2001 and 40% higher than the Rs 2,850 crore as on 30 September 2001.
This figure is expected to further grow during the current financial year. With good order book position, sales and production are expected to further pick up in the subsequent quarters. The company is also expected to declare a huge dividend for FY 2002-03.
With the impressive provisional results out, operators are speculating that funds will get active in the stock over the next couple of days. Today most institutions are closed on account of Gudi Padva, a local festival.
Public sector company Bharat Electronics (BEL) is one of the largest manufacturers of radars, wireless communications systems and other technical equipment for the defence forces. Earlier, the company's performance was under strain due to the post-Pokhran nuclear blast sanctions imposed by the United States. However, post-Kargil, the government has realised the need to increase its focus on acquiring strategic technical equipment for defence forces. This has dramatically changed the fortunes of the company.
BEL was incorporated at Bangalore in 1954 by the Government of India. Some disinvestment took place in the company in 1991-92. The government now holds 75.86% stake in BEL.
BEL introduced new and upgraded products based on in-house technology. Many of the products like decoy radars, upgraded air defence weapon control radars, coastal surveillance systems, low power transmitters, telemedicine systems, PC motherboard-based chipsets, etc. have been inducted into service or are under final stages of evaluation by various customer groups.
In November 2002, BEL signed a contract with the Union Home Ministry for setting up an integrated communication system for the Indian police. The Rs 97-crore network project would link Delhi and state headquarters, Union Territories and district headquarters using satellite terminals, providing fax, voice and data communication. The connectivity would be extended to police stations across country with the help of Multi Access Radio Telephones.
The project is the biggest of its kind in India, using state-of-the-art technology, and will be implemented by the Ghaziabad unit of the company in a period of 21 months.
For the third quarter ended 31 December 2002, BEL registered a 106% rise in net profit to Rs 53.10 crore, compared to Rs 25.75 crore in the corresponding period of last year. Total income increased by 19.6% to Rs 482.59 crore from Rs 403.40 crore in DQ 2001.
