BEML Q4 Results: Stock slides 6% after sharp cut in order book guidance

BEML Q4 Results: Stock slides 6% after sharp cut in order book guidance


Shares of state-run Bharat Earth Movers Ltd. (BEML) fell as much as 6% on Friday, May 29, in response to their March quarter results, which were lower on a year-on-year basis, particularly on the operating front.

For the March quarter, BEML’s net profit fell 38% from last year to ₹180 crore from ₹288 crore earlier.

Revenue for the quarter grew by 9% on a year-on-year basis to ₹1,794 crore from ₹1,653 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the March quarter declined by 36% on a year-on-year basis to ₹271 crore, while EBITDA margin narrowed by over 10 percentage points to 15.1% from 25.6% in the year-ago quarter.

Alongside the weak Q4 earnings, the company also lowered its order book guidance to ₹16,349 crore from the earlier target of ₹22,000 crore.

BEML recorded its highest ever annual value of production of ₹4,239 crore, a growth of 8.6% from last year, along with its highest-ever closing order book position of ₹15,896 crore.

Capex reached an all-time high of ₹379 crore, while R&D investments increased by 150% from the year-ago period, rising to 6.25% of overall topline, compared to 2.57% last year.

BEML’s board also approved a second-interim dividend of ₹2.3 per share and a final dividend of ₹0.55, taking the total payout to ₹2.85 per share for the full year.

Shares of BEML are trading 7% lower after the earnings announcement at ₹1,705.5. The stock is down 20% over the last 12 months, and trades well below its 52-week high of ₹2,437.



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