BEML Limited (500048) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 gross turnover reached ₹2,205.84 crore, up 18.85% YoY; PBT rose 4.63% and PAT reached ₹186.93 crore. Excluding the prior-year ₹22 crore coach price revision, comparable profit growth was reported at 14%.

• All manufacturing divisions were described as having turned around, supported by cost reduction and product-mix balancing; total dividends recommended and paid for the year amount to 100% of paid-up equity capital.

Financial highlights

• Gross sales ₹2,205.84 crore vs ₹1,856.01 crore; net sales ₹2,059.54 crore vs ₹1,732.79 crore; value of production ₹2,179.57 crore vs ₹1,885.95 crore.

• PBT ₹285.42 crore vs ₹272.80 crore; PAT ₹186.93 crore vs ₹175.28 crore; EPS ₹50.87 vs ₹47.70.

• Other income rose to ₹71.17 crore from ₹58.78 crore; interest expense increased to ₹4.61 crore from ₹1.79 crore, while depreciation declined to ₹14.12 crore from ₹22.99 crore.

• Net worth was ₹853.90 crore vs ₹694.39 crore; inventories were ₹649.08 crore vs ₹620.80 crore and debtors ₹770.21 crore vs ₹608.20 crore.

Outlook and guidance

• FY 2006-07 sales target ₹2,310 crore against an order book of ₹2,243 crore; management expected to meet the target with matching returns barring unforeseen circumstances.

• FY 2006-07 export target set at ₹110 crore, compared with FY 2005-06 export turnover of ₹61.49 crore; exports included ₹51.07 crore of physical exports.

• Long-term vision targets ₹5,000 crore turnover by FY 2013-14; R&D resources were planned to rise to around 2% of turnover in coming years.