Bharat Dynamics' standalone net profit tanked 75.3% to Rs 26.25 crore on 62.6% slump in net sales to Rs 240.03 crore in Q2 September 2020 over Q2 September 2019.
Standalone profit before tax (PBT) dropped 74.8% to Rs 40.60 crore in Q2 September 2020 as against Rs 161.13 crore in Q2 September 2019. Tax expense for the quarter tumbled 73.8% to Rs 14.35 crore as against Rs 54.68 crore paid in Q2 September 2019. The Q2 result was declared during market hours today, 12 November 2020.
The company said its operations returned to near normalcy after lockdowns and restrictions put in place due to Covid-19 pandemic. The movement restrictions of men and materials are slowly easing up though supply chain disruptions remain to some extent impacting company's production. The orders on hand taken up for production based on the availability of materials and components that get delivered to the divisions. Consequently sale volumes are yet to return to normalcy. The company's liquidity position is comfortable, there have been no structural impairment to any of its fixed and other assets.
Shares of Bharat Dynamics jumped 5.33% to Rs 316.20 on BSE.
Bharat Dynamics manufactures defense equipment. The company offers ammunitions, counter measures dispensing, infra red interference indicators, and missile systems. It serves military and aerospace industries in India. As of 30 September 2020, the Government of India held 74.93% stake in the company.
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