30 June 2020 Bharat Electronics (BHE)s 4QFY20 earnings came in higher than estimated, led by a strong uptick in margins. While revenue was in-line, the major surprise was the EBITDA margin coming in at 25.5% v/s our estimate of 20.5%. Thus, net profit was 26% above our estimate. Adjusted for EVM/VVPAT orders in the base year, execution was strong at 56%/37% for 4QFY20/FY20. The EBITDA margin tends to be volatile on a quarterly basis as it depends on the sales mix between deliverables. The current order book is strong at INR520b, with an OB/rev ratio of 4.1x. We tweak our FY21/FY22E EPS by -6%/+2%. Revenues were up 50% YoY to INR58b, Strong execution and lower other expenses resulted in EBITDA growth of 60% YoY to INR14.8b (26% above our estimates). The EBITDA margin stood at 25.5% v/s our expectation of 20.