BEML Limited (500048) Q4 02/03 earnings summary

Executive summary

• FY2002-03 sales reached ₹1,681.17 crore, up 18% YoY; PBT was ₹37.87 crore and PAT ₹26.10 crore, up from ₹13.01 crore and ₹5.35 crore, respectively.

• Earnings improved despite a ₹27.97 crore voluntary retirement scheme (VRS) cost, through cost-reduction and economy measures.

• The proposed dividend was 20%, with dividend and related tax absorbing ₹8.29 crore.

Financial highlights

• Sales were ₹1,681.17 crore vs ₹1,424.15 crore in FY2001-02; value of production was ₹1,740.16 crore vs ₹1,436.10 crore.

• PBT rose to ₹37.87 crore from ₹13.01 crore; PAT increased to ₹26.10 crore from ₹5.35 crore, a reported 388% rise.

• Other income increased to ₹55.51 crore from ₹16.81 crore, including ₹19.60 crore of provisions no longer required.

• Net worth was ₹532.19 crore in the CAG review, down from ₹555.54 crore; the balance sheet recognized a ₹21.06 crore deferred tax liability.

Outlook and guidance

• FY2003-04 turnover target was ₹1,760 crore; the order book stood at ₹1,321 crore, largely for defence equipment.

• Export target for FY2003-04 was ₹100 crore, compared with FY2002-03 export turnover of ₹21.45 crore; physical exports were affected by the Middle East crisis.

• Management expected improved prospects across segments, including potential Railway Board coach orders and demand from planned metro rail projects.