Indian heavy machinery maker BEML's Q2 profit falls as demand weakens

BEML

11/11/2024 08:25

Nov 11 (Reuters) - India's BEML  BEML.NS  reported a
1.5% fall in its second-quarter profit on Monday, hurt by lower
demand for its heavy machinery and equipment as manufacturing
activity dipped.
    The state-owned company makes machinery and products for
industries like aerospace, mining, rail and metro and has
clients such as Rail Vikas Nigam  RAIV.NS , Adani Power
 ADAN.NS  and Chennai Metro Rail.
    India's manufacturing activity growth eased in the last two
months of the September quarter as demand softened, according to
a survey. Overall growth was hurt by a softer rise in new
business and orders.  urn:newsml:reuters.com:*:nL4N3L2051
    BEML's consolidated profit fell to 510.3 million rupees
($6.1 million) in the quarter ended Sept. 30, compared to 517.8
million rupees a year earlier.
    The company's revenue from operations fell 6.2% to 8.6
billion rupees, after four quarters of rise.
    Cost of materials consumed, which makes up more than half of
the total expenses, grew 0.2% in the quarter, while total
expenses fell by 7% to 8.2 billion rupees.
    BEML executed orders worth 8.11 billion rupees during the
quarter, compared with 9.10 billion rupees a year earlier.
    Rival railway coach-maker Jupiter Wagons  JUWL.NS  reported
a 9.3% rise in its September-quarter profit.
    BEML's shares were down 0.6% after the results. They have
risen 47.5% so far this year, while those of Jupiter Wagons have
jumped 47.8%.
    

($1 = 84.3800 Indian rupees)

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))