BEML Limited (500048) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 gross sales reached a record Rs.176,574.59 lakh; PBT rose to Rs.5,018.14 lakh, while PAT was Rs.2,416.60 lakh versus Rs.2,610.06 lakh in FY 2002-03.

• A 20% dividend was recommended; sales target for FY 2004-05 was Rs.198,768 lakh, supported by an order book of Rs.215,502 lakh for delivery during FY 2004-05 and beyond.

Financial highlights

• Gross sales rose from Rs.168,117 lakh to Rs.176,575 lakh; value of production declined from Rs.174,016 lakh to Rs.169,186 lakh.

• PBT increased to Rs.5,018.14 lakh from Rs.3,786.96 lakh; tax provision rose to Rs.2,601.54 lakh from Rs.1,176.90 lakh, and PAT was Rs.2,416.60 lakh versus Rs.2,610.06 lakh.

• Interest expense declined to Rs.148.41 lakh from Rs.299.54 lakh; no fresh debt was raised and working capital was funded from internal resources.

• Operating cash flow was Rs.313.36 crore; cash and cash equivalents increased to Rs.507.95 crore from Rs.201.49 crore.

Outlook and guidance

• FY 2004-05 sales target was Rs.198,768 lakh, with higher profitability sought through marketing initiatives and cost reduction.

• Orders valued at Rs.215,502 lakh covered deliveries during FY 2004-05 and beyond; export target was set at over Rs.100 crore, described as challenging amid strong global competition.

• Planned initial capital expenditure of Rs.3,000 lakh was intended to replace and update plant and machinery, supporting production, productivity and quality.