BEML gets new order of Rs 250 crore

18 May 2024 , 12:15 AM

BEML shares surged over 5% on Friday, May 17, following the announcement of a ₹250 Crore order secured from Northern Coal Fields for a dump trucks contract. At the time of writing, BEML shares were trading 8.20% higher at ₹4,003.30.

The company reported a 9% increase in revenue in the fourth quarter compared to the previous year, reaching ₹1,513 Crore. Additionally, Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose by 29% to ₹370 Crore.

BEML's EBITDA margin expanded to 24.5% from 20.7% last year, representing a nearly 400 basis points increase. Net profit also grew by 64% from the previous year to ₹257 Crore.

Strong earnings led to a 13% increase in the company's stock earlier in the week, marking its largest single-day gain since August 2023.

In a recent interview with CNBC-TV18, BEML's Chairman and Managing Director, Shantanu Roy, highlighted lucrative opportunities in defence worth ₹6,000 crore, rail and metro projects valued at ₹58,000 Crore, and an additional ₹3,000 Crore in mining ventures.

Roy expressed optimism about BEML's future, aiming to secure at least 50% of rail and metro contracts and potentially over 80% in mining projects.

The company anticipates a steady revenue growth rate of 18-20% over the next 3-4 years, with Roy emphasizing the company's recent strategic initiatives, including advanced engine development, contributions to the Vande Bharat project, and the introduction of high-end mining equipment.

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