BEML records 16 percent growth in turnover

April 2nd, 2008 - 9:58 pm ICT by admin  

Bangalore, April 2 (IANS) Bharat Earth Movers Ltd (BEML) posted turnover of Rs.30.05 billion for fiscal 2007-08, registering year-on-year (YoY) growth of 16 percent over 2007 at Rs.26.01 billion, state-run defence enterprise announced here Wednesday. According to provisional financial figures released to stock exchanges, the company said profit before tax (PBT) increased by 11 percent YoY to Rs.3.5 billion.

With advance tax payment of Rs.1.2 billion, the net profit is projected to be around Rs.2.3 billion as against Rs.2.06 billion in fiscal 2006-07, which is expected to be about 10-12 percent YoY higher over the previous fiscal.

Of the total sales turnover, mining and construction equipment contributed Rs.18 billion, followed by defence with Rs.7.7 billion and rail and metro with Rs.2.7 billion. The remaining amount was generated from technology and trading divisions.

The order book for the new fiscal (2008-09), including backlog from the previous fiscal (2007-08) is Rs.37.95 billion as against Rs.17.32 billion, reflecting about 120 percent increase YoY growth.

“Of the total order book, mining and construction division has orders (in value) for Rs.12.66 billion, rail and metro Rs.14 billion and defence Rs.7.6 billion as against Rs.10 billion in the previous fiscal (2007),” BEML chairman and managing director V.R.S Natarajan told reporters here.

The mini-ratna defence enterprise admitted that opening up of the mining sector coupled with construction boom and expansion of railway projects, including metro rail service had led increase in orders from civilian areas compared to orders from defence.

“Though we are primarily a defence PSU (public sector undertaking), we have diversified into other strategic businesses in a big way to capitalise on unfolding opportunities and leverage our domain expertise. We are also consolidating our businesses to compete with other players in the areas we operate,” Natarajan said.

Exports during the year under review witnessed a quantum jump to Rs.2.58 billion from Rs.1.1 billon in FY 2007, posting YoY growth of a whopping 132 percent. The company’s products were exported to Indonesia, Oman, Saudi Arabia, Thailand, Yemen, West Africa and Zimbabwe.

Though a listed firm, the company did not declare its financial performance for the fourth quarter (January-March) as the accounts were still being audited for the entire fiscal.

While an interim dividend of 55 percent was declared, the company’s board will recommend a final dividend for the fiscal before the annual general meeting (AGM) in July. Total dividend for fiscal 2007 was 120 percent.

The net worth has increased to Rs.17.95 billion from Rs.10.14 billon in the previous fiscal. The net worth includes Rs.5.26 billion raised from the follow-on public issue.

The company raised Rs.5.26 billion from the market through a follow-on-public issue during the last fiscal. Post-issue, government holds 54 percent of the total equity capital (Rs.420 million), while the remaining 46 percent is with institutional and retail investors.

“As part of our diversification and expansion plans, we have entered into tie-ups with four overseas firms during the fiscal under review.

“The first one is with Tatra Sipox UK Ltd for manufacture of its tippers under Hemang brand and engines, which comply with Euro-II and Euro III norms,” Natarajan disclosed.

The other tie-ups are: With General Dynamics Land Systems of Canada to design and develop armoured patrol vehicles, wheeled light armoured vehicles and tactical vehicles for the armed forces. With WFEL of Britain to jointly develop dry support bridge on Tatra vehicles and with TDA Armaments SAS of France for integration of self-propelled mine burier on Tatra platforms.

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