Higher defence spending revs Q4 show of BEML, BEL

With their share of this business increasing, both expected to see strong earnings growth in FY18

When some of the larger state-run firms such as Coal India and Bharat Heavy Electricals lagged Street expectations, relatively smaller BEML’s numbers were ahead of the estimates.

Its March quarter results (announced after market hours on Tuesday) broke three quarters of decline in revenues. The Street cheered and the stock gained 4.5 per cent on Wednesday.

Revenue for the quarter (fourth or Q4 of 2016-17) rose by 18 per cent to Rs 1,346 crore. Net profit grew 26 per cent to Rs 186 crore.

While segmental results are awaited, analysts believe much of the performance could be attributed to an