BEML gains after inking MoU with IRCON Intl

BEML rose 2.29% to Rs 995.25 after the company said it signed pact with IRCON International to explore overseas market.

In an exchange filing made after market hours on Friday, BEML said it signed a memorandum of understanding (MoU) with IRCON International to explore and address opportunities in the overseas market by synergizing each other's strengths for large infrastructure projects in the transportation sector.

This MoU is aimed at promoting supply of BEML manufactured rolling stock as well as construction equipment for railway projects outside India where in IRCON will carry out civil and construction work as well as facilitate design validation and provenness for rolling stock of BEML to address export opportunities together.

Meanwhile, IRCON International was currently trading 0.43% higher at Rs 405.

BEML reported a consolidated net loss of Rs 27.20 crore in Q2 September 2019 compared with net profit of Rs 16.63 crore in Q2 September 2018. Net sales fell 6.4% to Rs 687.11 crore in Q2 September 2019 over Q2 September 2018.

State-run BEML operates in three verticals viz. defence & aerospace, mining & construction and rail & metro. As on 30 September 2019, the Government of India held 54.03% stake in BEML.

IRCON International, formerly Indian Railway Construction Company (IRCON), is an engineering and construction, specialized in transport infrastructure and is wholly owned by the Ministry of Railways. As on 30 September 2019, Government of India held 89.18% stake in IRCON International.

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