BEML Limited (500048) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000 sales reached Rs 1,317.09 crore, up 8.62% YoY; PBT was Rs 23.60 crore vs Rs 2.72 crore, and PAT was Rs 14.60 crore vs Rs 0.62 crore.

• Higher railway-product price realization, increased defence and railway supplies, and cost reductions supported profitability amid stiff earthmoving-equipment competition.

Financial highlights

• Value of production was Rs 1,293.85 crore, up Rs 49.70 crore YoY; interest expense fell to Rs 63.99 crore from Rs 88.78 crore, while depreciation rose to Rs 26.79 crore from Rs 25.72 crore.

• Other income increased to Rs 31.06 crore from Rs 28.28 crore; it included a Rs 5 crore VRS grant and Rs 12.30 crore of prior-year doubtful-debt and advance provisions no longer required.

• A 20% dividend on paid-up equity capital was recommended for FY 1999-2000.

Outlook and guidance

• The order book for FY 2000-01 was described as reasonably comfortable; infrastructure growth in roads, power projects, airports and seaports was anticipated.

• Strategic alliances in material-handling, crushing, batching and road-building equipment were expected to expand growth opportunities; efforts targeted greater sales of lower-end equipment.

• Plans included launching a full-fledged IT services venture and expanding into geological investigation projects; a Rs 1.43 crore site-investigation order for an underground LPG storage facility was nearing completion.