Bharat Dynamics Limited (BDL), established in 1970, is a key public sector undertaking (PSU) under India’s Ministry of Defence. Headquartered in Hyderabad, Telangana, BDL specializes in the production of guided missile systems and allied defense equipment, playing a pivotal role in enhancing the nation’s defense capabilities.
Business Model and Operations
BDL’s core competency lies in manufacturing a diverse range of missile systems, including surface-to-air missiles, anti-tank guided missiles, and underwater weapons like torpedoes. The company collaborates closely with the Defence Research and Development Organisation (DRDO) and foreign Original Equipment Manufacturers (OEMs) to produce advanced defense systems. Notable products in BDL’s portfolio encompass the Akash Weapon System, a medium-range surface-to-air missile, and the Konkurs-M, an anti-tank guided missile. Additionally, BDL is involved in the production of countermeasure dispensing systems and air defense systems. The company operates multiple manufacturing units across India, including facilities in Hyderabad, Medak district, and Visakhapatnam, with plans for expansion in other regions.
Q3 FY25 Financial Performance
In the third quarter of the fiscal year 2024-25 (Q3 FY25), BDL reported notable financial results:
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Revenue from Operations: The company achieved ₹832.14 crore in revenue, marking a 38% increase compared to ₹601.62 crore in the same quarter of the previous fiscal year.
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Net Profit: BDL’s net profit rose by 9% year-on-year, reaching ₹147.12 crore, up from ₹135.03 crore in Q3 FY24.
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EBITDA and Margins: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at ₹127 crore, reflecting a 7% growth from ₹119 crore in the corresponding quarter last year. However, the EBITDA margin experienced a decline, settling at 15.3% compared to 19.8% in Q3 FY24.
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Dividend Declaration: The Board of Directors declared an interim dividend of ₹4 per share for the financial year 2024-25.
Shareholding Pattern
As of December 31, 2024, BDL’s shareholding structure was as follows:
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Promoters: The Government of India held a majority stake of 74.93%.
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Foreign Institutional Investors (FII/FPI): Their holdings increased to 3.09%, up from 2.94% in the previous quarter.
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Mutual Funds: Investments by mutual funds saw a slight uptick, rising to 4.74% from 4.64% in the preceding quarter.
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Institutional Investors: Overall institutional holdings grew to 11.79%, compared to 11.40% in the prior quarter.
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Public Shareholding: The remaining 25.07% of shares were held by public investors, including retail and other non-institutional stakeholders.
Bharat Dynamics Limited continues to strengthen its position as a leading defense manufacturer in India, with a robust business model centered on the production of advanced missile systems and defense equipment. The company’s solid financial performance in Q3 FY25, highlighted by significant revenue and profit growth, underscores its operational efficiency and strategic importance in the defense sector. The stable shareholding pattern, with substantial government ownership and increasing institutional interest, reflects confidence in BDL’s future prospects.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
