Bengaluru-based defence public sector undertaking BEML is trading under pressure now. Its consolidated net profit for Q3 declined over 90 percent and revenue was lower by 25 percent year on year.
According to BEML Chairman DK Hota, the company is facing headwinds in terms of approvals and clearances. “At the moment we are almost equivalent to what we did last year. In the last two months of this financial year, we expect to grow over the last year’s numbers of Rs 3,540 crore. We had given a guidance of more than Rs 4,000 crore, but in the current scenario, exceeding last year’s numbers itself would be fairly substantial. Besides the topline, all other numbers in terms of inventory, receivables, employee productivity and orderbook, are quite healthy,” he said.
There are a lot of orders on the anvil from the defence sector. "Further clarity on these orders is expected in this quarter or in the first quarter of next year. I would expect that we would end the year at Rs 11,000 crore of orderbook,” he noted. The company's disinvestment programme is going on in full swing and roadshows are being conducted.