BEML Limited (500048) Q4 04/05 earnings summary

Executive summary

• FY05 sales reached a record Rs 1,85,601 lakh, up 5.11% YoY; PBT rose to Rs 27,279 lakh from Rs 5,018 lakh and PAT to Rs 17,528 lakh from Rs 2,417 lakh.

• Profitability was supported by product-mix and cost-control measures; Bangalore and KGF complexes returned to profit, while Mysore remained loss-making.

• Recommended 85% final dividend plus 15% interim dividend, taking the FY05 payout to 100%, the highest declared at the time.

Financial highlights

• Gross sales Rs 1,85,601 lakh versus Rs 1,76,575 lakh YoY; value of production Rs 1,88,595 lakh versus Rs 1,69,186 lakh.

• PBT Rs 27,279.52 lakh versus Rs 5,018.14 lakh; PAT Rs 17,528.33 lakh versus Rs 2,416.60 lakh; EPS Rs 47.70 versus Rs 6.58.

• Net sales after excise were Rs 1,73,279.11 lakh; other income Rs 5,878.10 lakh, up from Rs 4,306.41 lakh YoY.

• Raw material and spares costs were Rs 1,03,505.53 lakh; employee remuneration and benefits Rs 35,616.37 lakh; depreciation Rs 2,299 lakh.

• PBT includes the reported prior-period adjustment of negative Rs 89.75 lakh; FY05 tax provision was Rs 9,751.19 lakh, including a deferred-tax credit of Rs 1,293.81 lakh.

Outlook and guidance

• FY06 turnover target set at Rs 2,200 crore with better profitability; orders on hand for FY06 supplies stood at Rs 1,279 crore.

• FY06 export target set at Rs 15,000 lakh; FY05 export turnover was Rs 5,856 lakh, including Rs 5,167 lakh of physical exports.

• Metro coach demand outlook was positive, linked to projects in cities including Bangalore, Hyderabad and Ahmedabad; bid for Mumbai Metro as part of an L&T Gammon India, Siemens and BEML consortium.

• Earthmoving prospects depend on mining and infrastructure activity; changing coal-mine contracting models may require joint ventures for mine operation, equipment supply and maintenance.