NewsEarningsBharat Dynamics Reports Lower Profit for FY 2020-21, Declares Total Dividend of Rs 7.35 Per ShareBharat Dynamics Reports Lower Profit for FY 2020-21, Declares Total Dividend of Rs 7.35 Per Share
Bharat Dynamics Limited (BDL) reported a significant decrease in financial performance for FY 2020-21 due to COVID-19 disruptions. Profit fell by 51.8% to Rs 257.77 crore, while revenue dropped 38.4% to Rs 1,913.76 crore compared to the previous year. Despite challenges, BDL announced a total dividend of Rs 7.35 per share. The company acknowledged that pandemic-related lockdowns affected production, sales, and profit, making year-over-year comparisons difficult. Auditors issued an unmodified opinion on the financial results.
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Bharat Dynamics Limited (BDL) has released its audited financial results for the fiscal year ending March 31, 2021, revealing a significant impact from the COVID-19 pandemic on its operations and financial performance.
Financial Performance
The defense public sector undertaking reported a profit of Rs 257.77 crore for FY 2020-21, marking a substantial decrease from the Rs 534.90 crore profit recorded in the previous fiscal year. The company's revenue from operations also saw a considerable decline, dropping to Rs 1,913.76 crore from Rs 3,104.87 crore in the prior year.
| Particulars | FY 2020-21 | FY 2019-20 | Change |
|---|---|---|---|
| Profit | ₹257.77 Cr | ₹534.90 Cr | -51.80% |
| Revenue | ₹1,913.76 Cr | ₹3,104.87 Cr | -38.40% |
Dividend Announcement
Despite the challenging year, BDL's Board of Directors has recommended a final dividend of Rs 0.65 per share, with a face value of Rs 10 each. This comes in addition to an earlier interim dividend of Rs 6.70 per share, bringing the total dividend for FY 2020-21 to Rs 7.35 per share.
Impact of COVID-19
The company acknowledged that the COVID-19 pandemic and subsequent lockdown disruptions significantly affected its production, sales, and profit during the reporting period. As a result, BDL noted that the performance for FY 2020-21 is not directly comparable with previous periods due to these extraordinary circumstances.
Audit Opinion
The auditors have issued an unmodified opinion on the financial results, indicating that the financial statements present a fair and accurate view of the company's financial position and performance.
The financial results of Bharat Dynamics Limited for FY 2020-21 reflect the broader challenges faced by many companies during the pandemic. While the company experienced a decline in both revenue and profit, its decision to maintain a dividend payout may be seen as a positive signal to investors about its financial stability and future outlook.
Historical Stock Returns for Bharat Dynamics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.81% | +0.54% | -9.03% | +35.72% | +9.99% | +650.87% |
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