BEML posts smaller Q1 loss as expenses fall, govt spending increases

(Reuters) - India's BEML Ltd reported a narrower first-quarter loss on Friday, supported by a dip in input costs and as government spending for infrastructure increased.

The state-owned heavy equipment maker said its consolidated loss narrowed to 746.4 million Indian rupees ($9.02 million) in the three months ended June 30, from 823.3 million rupees a year earlier.

The Indian government's push for higher capital expenditure in its last full budget announced in February 2023 benefited companies in the infrastructure and allied space.

The push, which included segments such as defence and transport, came ahead of a parliamentary election due in 2024.

Also contributing to the narrower loss was a 13.2% fall in total expenses, thanks to a 30.5% dip in the cost of materials consumed.

Its consolidated revenue from operations, however, fell 14% to 5.77 billion rupees, hurt by a slowdown in the realisation of projects.

Shares of BEML fell as much as 2.5% on Friday after the results. They had risen 29% in the April-June quarter.

($1 = 82.7950 Indian rupees)

 

(Reporting by Ashna Teresa Britto; Editing by Sherry Jacob-Phillips and Janane Venkatraman)