BEL‘s share price was down in the red on Monday morning even as the company’s net profit for the September quarter beat analysts’ estimates. However, revenue missed estimates and the company also reported a decline in its order book.

What Happened: The company posted a standalone net profit of ₹1,091.27 crore for the quarter, a 34% increase from ₹812.3 crore in the same period last year. Revenue from operations rose 14.8% year-over-year to ₹4,583.41 crore, slightly below street estimates, while profits exceeded expectations.

Analysts had projected revenue of ₹4,766.4 crore and a profit of ₹896.0 crore. The company reported an EBITDA of ₹1,399 crore with a margin of 30.4%. The company’s order book as of October 1 sat at ₹74,595 crore, down from ₹76,705 crore at the end of the previous quarter. The company had fresh order inflows of around ₹7,400 crore during the April-September period.

See Also: Why Ola Electric Shares Are Upbeat Today Even Though HSBC Cut Target Price By 21%

Analysts Reactions: Motilal Oswal noted that the defence major revenue was 3% below estimates. The public sector firm’s EBITDA margin beat the brokerage firm estimates of 23.3%.

The company's gross margin declined by 120 basis points year on year but improved by 220 basis points quarter-over-quarter — which the brokerage said is likely due to the project mix during the period. This robust margin performance contributed to an 18% beat in both profit before tax and after tax versus estimates. The brokerage maintained its “buy” rating on the stock.

“BEL reported a strong financial performance during the quarter, registering growth on all fronts. The company did miss its revenue estimates but highlighted its strong operational capabilities by beating the street on the other two fronts,” said, Sagar Shetty, research analyst, at StoxBox.

He added that given the company's solid leverage stemming from its strong market position, BEL is likely to witness healthy growth in its order book going forward, further strengthening its competitive standing.

Price Action: BEL’s share price was down 0.62% to trade at ₹270.65 as the markets opened on Monday.

Read Next: CDSL Shares Jump 5% As Q2 Profit Beats Estimates, Revenue Up 55%