Shares of Bharat Dynamics surged 16 per cent to Rs 349.70 in the early morning deals on the BSE on Tuesday after the company reported more-than-double net profit at Rs 309.72 crore in March quarter (Q4FY20) on the back of strong operational income. The state-owned defence company had logged profit of Rs 124.12 crore in the year-ago quarter.
In the past four trading days, the market price of Bharat Dynamics has appreciated by 34 per cent from level of Rs 261 on the BSE. At 09:36 am, the stock was trading 12.5 per cent higher at Rs 339 on the BSE, as compared to 0.65 per cent rise in the S&P BSE Sensex. It was trading close to its 52-week high level of Rs 365 touched on November 13, 2019.
The company’s revenue from operations during the quarter under review rose 64 per cent to Rs 1,435 crore from Rs 877 crore in the corresponding quarter of the previous fiscal.
The company said it did not have any significant impact on the sales and operations of the company for the financial year 2019-20 on account of the Covid-19 pandemic.
Meanwhile, the board of directors of the Company recommended a final Dividend at Rs 2.55 per share (face value of Rs 10 each) for the year ended March 2020.
Bharat Dynamics is one of the leading defence PSUs in India 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.