Bharat Dynamics reports 2-fold surge in Q4 net profit

The shares of Bharat Dynamics opened 15% higher to touch an intraday high of Rs 349 on BSE on the back of strong Q4 performance.
On Monday, after market hours, the manufacturer of defence equipment reported a 149.5% jump in its net profit to Rs 309.72 crore for the March ended quarter, on the back of a 57.17% rise in total income to Rs 1,467.75 crore.
Earlier this year, the government decided to divest 15% stake in Bharat Dynamics via offer for sale (OFS) out of its shareholding of 87.75%.

The company’s board proposed a dividend of Rs 2.55 per share for the year ended 31 March 2020.
The COVID-19 pandemic, which is globally inflicting high economic and human costs causing slow down of economic activity, did not have any significant impact on the sales and operations of the company for the financial year 2019-20.
Bharat Dynamics offers ammunitions, counter measures dispensing, infra red interference indicators, and missile systems to military and aerospace industries in India.

The state-owned company is engaged in the manufacturing of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons launchers countermeasures, and test equipment. It is the sole manufacturer in India for SAMs torpedoes ATGMs. It is also the sole supplier of SAMs and ATGMs to the Indian armed forces.
Additionally, it is engaged in the business of refurbishment and life extension of missiles manufactured. It is also the co-development partner with the DRDO for the next generation of ATGMs and SAMs.
It recently entered into a large scale manufacturing of the ventilators developed by Nocca Robotics, an incubated start-up of IIT Kanpur.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.