India's BEML posts Q2 profit jump on healthy demand, lower costs

KEC International

09/11/2023 12:53

BENGALURU, Nov 9 (Reuters) - Indian state-owned heavy
equipment maker BEML  BEML.NS  reported a more than three-fold
climb in second-quarter profit on Thursday as strong industrial
demand led to better order inflows and lowered costs.
    The company's consolidated profit rose to 517.8 million
rupees ($6.22 million) in the three months to Sept. 30 from
162.6 million rupees a year earlier.
    Capital goods companies have benefitted from the Indian
government's push for higher capital expenditure in its last
full budget announced in February 2023, before the next general
election in 2024.
    Additionally, commodity prices such as steel have eased,
helping BEML lower its input costs by around 20%.
    The company, which operates in the defence, aerospace, rail
and mining construction and manufacturing segments, received
orders from the likes of the Bengaluru Metro Rail Corporation
and Indian Ministry of Defence during the quarter.
    Its revenue rose nearly 14% to 9.17 billion rupees.
    Peers Bharat Dynamics  BARA.NS , Thermax  THMX.NS  and KEC
International  KECL.NS  too reported a rise in profit last week.
    Shares of BEML closed 2.02% lower ahead of results. They
have risen 42.6% so far this year.
    
    ($1 = 83.2770 Indian rupees)

 (Reporting by Varun Vyas and Manvi Pant in Bengaluru; Editing
by Janane Venkatraman)
 ((varunvyas.hebbalalu@thomsonreuters.com;))