BEML Q3 Results: Net profit falls 50% but margins improve on lower costs

Shares of Bharat Earth Movers Ltd. (BEML), the state-run company fell on Thursday, February 6, after it reported its December quarter results, which were weak, although lower costs contributed to the operating performance of the company.

BEML’s net profit nearly halved from the same quarter last year to ₹24.4 crore. It had reported a profit of ₹48.2 crore during the same quarter last year.

Revenue for the quarter also declined by 16.3% to ₹876 crore, while the figure in the base quarter stood at ₹1,047 crore.

BEML’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 8% from the year-ago period to ₹60.6 crore, while margins expanded to 7%, a 160 basis points growth from 5.4% last year.A drop in other expenses, along with employee benefit expenses also contributed to the improvement in margins for BEML during the quarter.

The company’s board has also approved an interim dividend of ₹5 per share post the earnings.

Shares of BEML fell to the lows of the day and are currently trading 2.1% lower at ₹3,315.