Bharat Dynamics Limited — Investor Presentation 2024

Jun 25, 2024

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BHARAT DYNAMICS LIMITED

(A Govt. of India Enterprise, Ministry of Defence)

CIN :- L24292TG1970GOI001353

Corporate Office: - Plot No. 38-39, TSFC Building, Near ICICI Towers, Financial District, Nanakramguda, Hyderabad-500032 Registered Office: - Kanchanbagh, Hyderabad-500058 Tel: 040-23456145; Fax: 040-23456110 E-mail: investors@bdl-india.in; Website: https://bdl-india.in

BDL/CS/2024/SE-32

Date:25/06/2024

To, Compliance Department The National Stock Exchange of India Ltd Exchange Plaza, Bandra-Kurla Complex, Bandra (East) Mumbai- 400051 Scrip Code- BDL	To, Compliance Department BSE Limited Phiroze Jeejeebhoy Tower, Dalal Street Mumbai- 400001 Scrip Code- 541143

– Subject: Investor Meet / Conference Investors Presentation Reg

1. Please find enclosed the Investors presentation.

2. This is for your information and record.

For Bharat Dynamics Limited NAGULA Digitally signed by NAGULA NAGARAJA NAGARAJA Date: 2024.06.25 17:16:22 +05'30' N. Nagaraja Company Secretary

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BHARAT DYNAMICS LIMITED INVESTOR PRESENTATION - June 2024

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DISCLAIMER

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By attending the meeting/telephonic call where this presentation is made, you agree to be bound by the trailing restrictions regarding the information disclosed in this presentation. This presentation has been prepared by Bharat Dynamics Limited (the “ Company ”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person and does not constitute a recommendation regarding the securities of the Company.

This presentation, its contents and any oral information provided in connection with this presentation are strictly confidential and should not be copied, published or reproduced in any form or distributed, disseminated or disclosed, in whole or part, by recipients directly or indirectly to any other person. Failure to comply with this restriction may constitute a violation of applicable securities laws.

This presentation contains certain statements that are or may be forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth and competition, among others. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Any investment in securities issued by the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company, its promoters, any placement agent, their respective advisers or representatives are unaware. Against the background of these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company, its promoters, any placement agent, their respective advisers or representatives assume no responsibility to update forward-looking statements or to adapt them to future events or developments. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.

The information contained in this presentation has not been independently verified. The information in this presentation is in summary form and does not purport to be complete. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation. Further, past performance of the Company is not necessarily indicative of its future results. Any opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, investment or other advice. Neither the Company or its promoters, nor any placement agent or their respective advisers or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. Neither the Company, its promoters, any placement agent, nor any of their respective advisers or representatives is under any obligation to update or keep current the information contained herein.

This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any advertisement, offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person whether by way of private placement or to the public, in any jurisdiction, including in India, the United States, Australia, Canada or Japan, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment therefor. Investing in securities involves certain risks and potential investors should note that the value of the securities may go down or up. Accordingly, potential investors should obtain and must conduct their own investigation and analysis of the relevant information carefully before investing.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended, or any other applicable law in India.

In this presentation:

• All figures mentioned are for the Company as a standalone entity and for the period indicated at respective places.

• 1 Crore = 10 Million = 100 Lakh.

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BHARAT DYNAMICS LIMITED RECENT DEVELPOMENTS

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During the FY 2023-24 the Heavy Weight Torpedo order, Export contract of Light Weight Torpedo, Akash (Indian Air Force) order etc., were successfully executed and completed the orders

Man Portable Anti-Tank Guided Missile (MPATGM) Missile development trials was conducted successfully in the month of April 2024.

User Evaluation Trials of Advanced Light Weight Torpedo (ALWT) were successfully conducted in the month of April 2024.

BDL is the for out of that three were co-development partner many programs, recently weapons successfully demonstrated, user trails for one weapon was successfully completed.

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BHARAT DYNAMICS LIMITED ORDER BOOK POSITION

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Stable Order Book

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Total Total
New Orders received
Order Book Order Book
In FY 2023-24
As on As on
1 [st] April 2023 31 March 2024
INR 1793 Crore
INR 20054
INR 19434
Crore
Crore
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Orders in pipeline
in next 2-3 years
INR 20000 Crore
Approx
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Export Orders

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Export Order
Position as on
Potential
31 March 2024 : Products
for
INR 2420 Cr Exports
Approx
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Akash SAM Light Weight Torpedo CMDS NAG

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Konkurs M SAAW Astra

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Helina/Dhruvastra
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BHARAT DYNAMICS LIMITED KEY FINANCIAL HIGHLIGHTS FOR FY 2023-24

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Revenue from Operations Increased by 42% during Q4 2024 (Rs 854 crores) compared to previous quarter ended 31st Dec 2023 (Rs 602 crores) Achieved record PAT of Rs.612.72 Crores, marking a 74% increase from the previous year’s Rs.352 Crores The production for the year was increased to Rs.2591.91 Crores as compared to previous year of Rs.2508.43 crores The Total Income increased by 3% YoY, amounted to Rs.2731 crores as compared to previous year of Rs.2645 crores, which is mainly attributed to increase in Interest Income. Revenue from Operations stood at Rs.2369 crores as compared to previous year of Rs.2489 crores.

BHARAT DYNAMICS LIMITED KEY FINANCIAL HIGHLIGHTS FOR FY 2023-24 EBIDTA Improved by 38% compared to Previous Year (PY): EBIDTA Margin during the year is 22.6% compared to PY of 16.4%.

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PAT increased by 83% compared to PY: PAT Margin during the year is at 25.9% compared to PY of 14.1%

R&D R&D expenditure incurred during the year is Rs.75.37 Crores (i.e. 3.18% of Sales Turnover)

BHARAT DYNAMICS LIMITED KEY FINANCIAL HIGHLIGHTS

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Revenue from Operations (in INR Cr)
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PAT (in INR Cr)
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3500
3,104.9
3000 2,817.4
2,489.4
2,369.3
2500
1,913.8
2000
1500
1000
500
0
FY20 FY21 FY22 FY23 FY24
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700
612.7
600 534.9
499.9
500
400 352.2
257.8
300
200
100
0
FY20 FY21 FY22 FY23 FY24
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EBITDA (in INR Cr) & EBITDA Margin
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Net Worth (in INR Cr)
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1000 30%
755.5 726.1 4000 3,636.8
800 24.3% 25.8% 22.6% 25% 3500 3,211.5
3,030.6
20% 3000 2,606.8 2,684.8
600 18.0% 536.6
16.4% 2500
344.7 408.2 15%
2000
400
10% 1500
1000
200
5%
500
0 0% 0
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
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BHARAT DYNAMICS LIMITED KEY FINANCIAL HIGHLIGHTS

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Return on Equity (in %)
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Total Dividend(in INR Cr) & Dividend Payout Ratio
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250 52.3% 55%
700 25.0%
612.7 48.6%
600 534.9 21.9% 200 50%
499.9 20.0%
500 17.5% 17.9% 45%
150
400 352.2 15.0%
40%
300 257.8 11.3% 100
9.7% 10.0% 30.4% 31.6% 35%
200 30.1%
50
5.0% 30%
100 161 135 152 171 193
0 25%
0 0.0%
FY20 FY21 FY22 FY23 FY24
FY20 FY21 FY22 FY23 FY24
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Trade Receivables (in INR Cr) & Turnover Ratio (Days)
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Inventory (in INR Cr) & Turnover Ratio (Days)
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3000 350
2,676.2
315
300
2500
281
194 212 250
2000
183
1,475.2 1,495.4 1,446.2 200
1500 1,185.0
150
1000
100
500
50
0 0
FY20 FY21 FY22 FY23 FY24
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2500 350
1,982.2
300
2000 1,822.4 305
266
1,654.5 250
267
1500 1,397.0 214
200
1000 856.5 150
101 100
500
50
0 0
FY20 FY21 FY22 FY23 FY24
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Source: Company Website; RoE = PAT/Avg Net Worth

*includes Final Dividend Declared

BHARAT DYNAMICS LIMITED FINANCIAL SUMMARY

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Particulars	Units	FY24	FY23	FY22	FY21	FY20
Revenue from Operations	₹ Cr.	2369.27	2489.39	2817.40	1913.76	3104.87
Profit Before Exceptional Items and Tax	₹ Cr.	828.24	481.80	743.50	340.88	742.45
Profit Before Tax	₹ Cr.	828.24	481.80	709.91	340.88	742.45
Profit After Tax	₹ Cr.	612.72	352.17	499.92	257.77	534.90
Value of Production	₹ Cr.	2591.91	2508.43	2901.76	2042.67	2601.21
Material Consumption	₹ Cr.	1119.96	1210.33	1263.37	970.08	1014.09
Equity	₹ Cr.	183.28	183.28	183.28	183.28	183.28
Inventory	₹ Cr.	1982.47	1822.44	1654.45	1397.01	856.52
Trade Receivables	₹ Cr.	1185.01	1446.23	1495.36	1475.20	2676.19
Capital Employed*	₹ Cr.	3566.09	3155.08	2973.45	2637.01	3191.76
Net Worth	₹ Cr.	3636.82	3211.49	3030.56	2684.75	2606.83
Number of Employees	Nos.	2401	2560	2674	2812	2950
Employee Costs	₹ Cr.	600.01	532.46	570.66	501.09	534.03
Employee Costs to Sales	%	25%	21%	20%	26%	17%
Earnings per Share (EPS) for Face Value Rs 5 Each	₹	16.72	9.61	13.64	7.03	14.59

• Capital Employed (FY21 onwards) is calculated using formula Networth + Debt+ Deferred Tax Liability (Net) as per the Guidance Note of ICAI on Sch III to Companies Act, 2013

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THANK YOU

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