Date:04/04/2005 URL: http://www.thehindubusinessline.com/2005/04/04/stories/2005040401890400.htm

Back BEML pre-tax profit soars to Rs 272 cr

Our Bureau

The profit figure was largely driven by exports of Rs 60 crore which almost doubled over FY04 exports of Rs 32 crore.

Bangalore , April 3

BHARAT Earth Movers Ltd (BEML) has notched a 444 per cent growth in pre-tax profit, which touched Rs 272.16 crore during the year ended March 31, 2005.

It has posted its highest ever gross turnover of Rs 1,916 crore, registering 8.5 per cent growth over its 2003-04 sales turnover of Rs 1,766 crore.

The profit figure was largely driven by exports of Rs 60 crore which almost doubled over FY04 exports of Rs 32 crore; the PBT for the previous fiscal was Rs 50 crore.

An aggressive export strategy was marked by forays into new markets such as Sri Lanka, Surinam, Ethiopia and the Netherlands; BEML has also posted representatives in select countries to provide equipment training and parts support.

It reported a value of production of Rs 1,860.04 crore compared to Rs 1,692 crore last year.

The company plans to make a capital investment of Rs 120 crore for the years 2005-06 and 2006-07 to modernise its manufacturing plants.

This would be met out of internal accruals.

The order book position of Rs 2,003 crore is comfortable and many more are in the offing in the coming months.

A ten-year corporate plan has been drawn up to reach sales turnover of Rs 5,000 crore by its golden jubilee year, 2013-14.

In fiscal 2004-05, BEML became the first company to indigenously assemble and supply stainless steel coaches for the Delhi metro project in collaboration with South Korean company Rotem.

The company is setting up a centre for excellence for manufacturing metro rolling stock in Bangalore keeping in view the last number of metro rail projects coming up in several cities including Bangalore and Mumbai.

BEML acquired two workshops and 1,109 acres of surplus land from the defunct Bharat Gold Mines Limited, KGF.

The workshops will be modernised with substantial investment and converted into ancillaries for outsourced manufacture of aggregates, parts and spares of military wagons and rail coaches.

The land is being used as test-track for certification of armoured recovery vehicles assembled at KGF and the proposed Bhim T6 project.

The traditionally loss-making manufacturing units at Bangalore and KGF Complex have for the first time registered marginal profits.

The company has initiated steps to improve production and productivity, bring down costs through VRS and long-term purchase plans for high-value as well as high-volume items.

It declared 15 per cent interim dividend for the first time.

During the year, BEML signed MoUs with US company Terex Corporation to market high-end dump trucks of 150T, 240T and 360T capacities; and with Bucyrus International, USA, for 40 cu m mining shovels in the domestic market.

In collaboration with Kerametal of Slovakia, it plans to promote multi-utility armoured vehicles and amphibious transporters.

BEML and Polish company Bumar have tied up to jointly work on the modernisation of T72 tanks with 1000-HP engine.

The defence PSU plans to tie up with Brookeville, USA, for light-rail vehicles; with HSW, Poland, for mine-laying vehicles; and with Kopex, Poland for longwall mining and mine-haulage systems.