BEML net up 45 per cent in Q4

Order book position swells to Rs 5,036 crore; bags order from Bangalore Metro Rail Corporation for supply of 150 coaches

BEML Ltd, the mining and construction, defence, rail and metro coach manufacturer under the ministry of defence, today reported a healthy 45.1 per cent rise in its net profit at Rs 172 crore for the fourth quarter ended March 31, 2009 compared to the corresponding quarter last year. The rise was mainly on account of a 75 per cent rise in orders for rail and metro coaches.

Despite drop in the number of orders from the defence ministry, the company’s total sales during the fourth quarter rose by 16.6 per cent to Rs 1,282.27 crore compared to the same period last year.

For the full year ended March 2009, the company reported a net profit of Rs 268.84 crore, registering a year on year growth of 19.4 per cent.

The company, for the first time, crossed the Rs 3,000 crore sales mark and posted a total sales of Rs 3,013.47 crore, a growth of 11 per cent over the previous year. All the manufacturing divisions of the company made profits during the year. The profit before tax also grew by 11 per cent to Rs 387.4 crore compared to the previous year.

BEML’s order book position as on April 1, 2009 stood at Rs 5,036 crore compared to Rs 4,000 crore a year ago, a growth of 26 per cent. On the export front, BEML has shown a rise of 51 per cent to Rs 305 crore during 2008-09 compared to the previous fiscal.

Its defence business division has posted sales of Rs 595.39 crore, a drop of 21.6 per cent compared to the previous year. This was mainly due to delay in placement of orders by the defence ministry for its products, said V R S Natarajan, chairman and managing director, BEML Ltd.

Talking to reporters, here today, he said for expansion of defence business, the company has tied up with a host of strategically important overseas technology leaders for new defence products including Euro compliant engines for Tatra vehicles.

The rail and metro business unit has registered a 75 per cent jump in sales at Rs 475.82 crore compared to the previous year. The mining and construction business group has posted sales of Rs 1,840.95 crore, a year on year growth of 20 per cent. The division has completed manufacture and supply of 3 units of 20 Cubic metre mining shovels for the first time in India, he said.

"Mining and construction business continues to be our mainstay, accounting for 61 per cent of the company's sales for the year. Defence businesscontributed about 20 per cent and rail and metro business 16 per cent. We have a healthy order book of Rs 5,036 crore for this year," Natarajan said.

The order book includes Rs 3,100 crore from metro and railways for supply of coaches and wagons, Rs 1,500 crore from mining and construction and Rs 590 crore from the defence sector, he said.

In order to further improve its performance in this segment, the company has entered into an MoU with Steel Authority of India for long term supply and maintenance of equipment.

Natarajan said, BEML has bagged an order valued at Rs 1,672 crore from Bangalore Metro Rail Corporation Ltd (BMRCL) for supply of 150 standard gauge metro cars, in addition to on hand order of Rs 1,400 crore from Delhi Metro Rail Corporation and Indian Railways. The manufacturing capacity at Bangalore complex has been further augmented for metro cars, taking into consideration the business potential in this segment with the the upcoming metro projects including Chennai, Mumbai and Kochi.

“We are bullish on the metro rail business as there are 12 new metro rail projects are coming up at various cities in the country and we intend to participate in all new projects,” he Natarajan added.

BEML, in which the government holds 54 per cent equity stake, has maintained a dividend of 120 per cent for FY 2009, same as previous year.

Enhanced investment in infrastructure as indicated in the general budget and product expansion in the railway budget for this fiscal will create opportunities for the company to improve its topline growth.