BEML Q4FY23 PAT up 18.2% yoy at Rs158 crore on sharply lower input costs and other expenses
BEML reported -17.56% lower sales revenues for the March 2023 quarter on consolidated basis at Rs1,388 crore. Revenues were up sequentially by 33.85%. BEML essentially caters to the Indian Railways and the Defence establishment and hence order flows can be cyclical in nature as well as dependent on the Union Budget allocations. With the government focusing largely on in-sourcing defence orders, there appears to be a lot of positive traction on the business front.
That explains why despite the lower revenues, the operating profits were up 26.85% on a yoy basis while the net profits were up 18.2% on a yoy basis. The surge in profits was on the back of fall in raw material costs, inventory efficiency gains as well as lower other expenses in the quarter. The order book position of the company stood at Rs8,570 crore or close to one and a half years of sales as of April 2023.
Financial highlights for Mar-23 compared yoy and sequentially
| BEML | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 1,388 | ₹ 1,684 | -17.56% | ₹ 1,037 | 33.85% |
| Operating Profit (Rs cr) | ₹ 271 | ₹ 213 | 26.85% | ₹ 76 | 257.72% |
| Net Profit (Rs cr) | ₹ 158 | ₹ 133 | 18.19% | ₹ 66 | 137.84% |
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| Diluted EPS (Rs) | ₹ 37.87 | ₹ 32.04 |
| ₹ 15.92 |
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| OPM | 19.51% | 12.68% |
| 7.30% |
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| Net Margins | 11.36% | 7.92% |
| 6.39% |
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BEML saw operating margins improve from 12.68% to 19.51% on a yoy basis, while the net profit margins were up from 7.92% to 11.36% on a yoy basis. The tax burden was relatively higher in the current quarter. Full year sales for BEML stood at Rs3,839 crore, almost flat on yoy basis. The board has declared a final dividend of Rs5 per share taking the total dividend for the year to Rs10 per share.