State-run BEML Registers Net Profit Up 53 % in 2017-18

State-run Bharat Earth Movers Ltd (BEML) reported net profit of Rs 130 crore for fiscal 2017-18, registering 53 percent annual growth from Rs 84 crore in the previous fiscal 2016-17.

The company's board of directors has recommended an annual dividend of Rs 8 per share (80 percent) for the fiscal (FY 2018) to its retail and institutional investors.

In a regulatory filing to the BSE, the city-based defence behemoth said revenue from operations grew 17 percent to Rs 3,305 crore for the fiscal under review (FY 2018) from Rs 2,835 crore year ago (FY 2017).

Although net profit for the fourth quarter (Q4) of the fiscal at Rs 188 crore remained flat 1.1 percent annually from Rs 186 crore in the same period year ago, it grew sequentially a whopping 1,006 percent from Rs 17 crore quarter ago.

"Revenue for the quarter under review (Q4) declined 5 percent to Rs 1,253 crore from Rs 1,316 crore in the like period year ago, but shot up 71 percent sequentially from Rs 732 crore quarter ago," said the filing.

Profit before tax (PBT) grew 67 percent annually to Rs 164 crore for FY 2018 from Rs 98 crore in FY 2017.

PBT for Q4 increased 11 percent on year-on-year (YoY) basis to Rs 222 crore from Rs 200 crore in the same period year ago and 1,006 percent from Rs 17 crore quarter ago.

"With the introduction of the Goods and Services Tax (GST) from July 1, 2007, revenue from operations does not include taxes and duties for the fiscal as against excise duty in the previous fiscal," added the filing.

The company's bluechip scrip of Rs 10 face value closed at Rs 951.45 at the end of trading on the BSE, gaining Rs 17.90 per share from Thursday's closing price of Rs 933.55 after opening at Rs 936.70 earlier in the day.

"Mining and construction business grew 11 percent, while rail and Metro business posted a record 114 percent growth in production and sale of 244 coaches and defence business 10 percent," company Chairman D.K. Hota told reporters here.

The company began the new fiscal (2018-19) with an order book of Rs 6,700 crore.

"We have set a challenging target for the fiscal to realise our potential, as business prospects are encouraging," said Hota.

Admitting that the mining and construction market was competitive and unpredictable, Hota said the company was deploying 150-tonne and 190-tonne dumpers for user trials in line with the shift in the market trend.

Revenue from sale of equipment to the coal sector increased 79 percent and non-coal segment 28 percent during the fiscal.

"We have delivered the first 3-car train set for the Bengaluru Metro service from whose operator we have a contract to supply 150 cars. Two train sets have been supplied to the Kochi Metro service in Kerala," Hota added.