BEML Limited (500048) Q4 97/98 earnings summary

Executive summary

• FY98 sales reached a record Rs 1,259.71 crore, up 7.69% YoY; profit before tax fell to Rs 16.05 crore from Rs 31.16 crore, mainly due to Railcoach Division losses and intense competition.

• Profit after tax was Rs 10.65 crore versus Rs 16.16 crore; the recommended dividend was 20% of paid-up equity capital.

Financial highlights

• Sales rose to Rs 1,259.71 crore from Rs 1,169.79 crore; value of production increased to Rs 1,285.96 crore from Rs 1,182.07 crore.

• Profit before depreciation, interest and tax was Rs 141.37 crore; depreciation was Rs 24.58 crore, interest Rs 100.74 crore, and PBT Rs 16.05 crore.

• PAT was Rs 10.65 crore versus Rs 16.16 crore; tax provision fell to Rs 5.40 crore from Rs 15.00 crore.

• Exports reached a reported record Rs 71.89 crore, compared with Rs 62.24 crore in FY97; key markets included Syria, UAE and Tunisia.

Outlook and guidance

• Infrastructure, core industries and mining investment were expected to support demand; the earthmoving equipment order book was described as comfortable and encouraging.

• Planned growth initiatives included Surface Miners, road-building Pavers, greater defence-sector sales, Engineering Bureau Services and exploration of an overseas manufacturing/marketing joint venture.

• A five-year R&D plan targeted diversification into allied and non-allied businesses, including hydraulic components, aggregates, rail vehicles and railway special machinery.