Bharat Electronics (BHE)'s 2QFY21 earnings were 23% higher than our est., with revenue beat of 15%. While EBITDA was 25% higher than our est., the EBITDA margin came in lower due to a miss on gross margins. Margins depend on the sales mix between deliverables and hence it tends to be volatile on a quarterly basis. BHE's current order book is strong at INR522b, with an OB/rev ratio of 4x. Order inflows declined 78% YoY to INR15.6b. In 1HFY21, order inflow decline stood lower at 45% YoY. Major orders received in 2Q were for advanced...