BEML posts marginal rise in Q4 net profit despite slide in revenue

Public sector engineering major BEML on Friday posted a marginal rise of 0.7 per cent in its stand-alone net profit to Rs 1.87 billion in the fourth quarter of current financial year owing to fall in revenue from operations.

Total income from operations declined 4.8 per cent to Rs 12.52 billion during this period as against Rs 13.15 billion reported a year earlier.

The Mini Ratna public sector unit, however, reported a 53 per cent rise in its consolidated net profit to Rs 1.29 billion for FY18. It's income from operations also rose to Rs 32.98 billion, up 16.5 per cent over the same period of previous fiscal.

The company, which operates three major business verticals namely mining and construction, rail and metro, and defence production, said its order book for the next fiscal looks healthy despite a few headwinds.

"Mining and construction business registered a growth of 11 per cent, while rail and metro business achieved record sale of 244 metro cars, registering a growth of 114 per cent over the previous fiscal. Despite headwinds faced by defence business, it grew by 10 per cent," DK Hota, Chairman and Managing Director of BEML, said in a press conference here.

He also said the state-owned entity is aiming to see 30 per cent rise in sales in the current financial year.

"BEML has a healthy order book position of Rs 67 billion out of which rail and metro has an order book size of Rs 27 billion, defence has orders worth Rs 26 billion with rest coming from mining sector," Hota said.

On the government's plan for strategic disinvestment of BEML, Hota said centre has sought some information which we have already provided. The central government has given in-principle approval for strategic divestment up to 26 per cent in BEML in July last year.

The company also said that it has undertaken a capital expenditure of Rs 0.7 billion in the last financial year, which will be doubled to Rs 1.40 billion this fiscal. "Our planned capex will be used to upgrade our present machinery apart from venturing into new areas," Hota of BEML said. 

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