BEML Limited (500048) Q4 98/99 earnings summary

Executive summary

• FY99 turnover was Rs 1,212.62 crore, down from Rs 1,259.71 crore; profit after tax fell to Rs 0.62 crore from Rs 10.65 crore.

• Subdued domestic and global markets, delayed customer offtake and higher employee costs pressured operations and profitability.

• The year-end order book was Rs 1,076 crore, with deliveries scheduled over the next two years; no dividend was recommended.

Financial highlights

• Value of production was Rs 1,244.15 crore versus Rs 1,285.96 crore; PBT was Rs 2.72 crore versus Rs 16.05 crore.

• Sales declined to Rs 1,212.62 crore from Rs 1,259.71 crore; employee remuneration and benefits rose to Rs 241.32 crore from Rs 218.08 crore.

• Interest expense fell to Rs 88.78 crore from Rs 100.74 crore; depreciation increased to Rs 25.72 crore from Rs 24.58 crore.

• Export turnover was reported at Rs 10.52 crore; export earnings on an FOB basis were Rs 10.04 crore. Deemed export orders of Rs 686.74 crore were secured under the Coal India IBRD tender.

Outlook and guidance

• Order book stood at Rs 1,076 crore at year-end, with delivery spread over the following two years.

• Defence supplies were targeted to reach 28%–30% of turnover; additional defence orders were expected during FY00.

• Management expected operating stagnation to persist while economic recovery, political stability and core-sector project execution remained slow.

• Y2K remediation across systems, equipment and products was expected to cost Rs 9 crore and be completed by October 1999.