BEML’s Q2 Profit Declines as Market Demand for Equipment Drops

State-owned heavy equipment maker BEML reported a 1.5% drop in its Q2 profit, hurt by lower demand for machinery and equipment. The company's profit for the quarter ended September 30 fell to Rs. 510.3 million ($6.1 million) from Rs. 517.8 million a year ago. Revenue from operations declined by 6.2% to Rs. 8.6 billion, marking the first drop after four quarters of growth.

Manufacturing Slowdown Impacts Demand

India’s manufacturing activity growth slowed in the last two months of the September quarter. A survey indicated that weaker demand caused a softer rise in new business and orders, affecting industry-wide growth.

Key Business Highlights

• Orders Executed: BEML executed orders worth Rs. 8.11 billion, down from Rs. 9.10 billion in the same period last year.
• Expenses: Total expenses fell 7% to Rs. 8.2 billion. However, material costs, which account for over half of the expenses, grew slightly by 0.2%.

BEML manufactures products like dozer, motor graders and more for sectors like aerospace, mining, rail, and metro. Its major clients include Rail Vikas Nigam, Adani Power, and Chennai Metro Rail.

Rival Jupiter Wagons Posts Profit Growth

While BEML faced a decline, rival railway coach-maker Jupiter Wagons reported a 9.3% rise in its Q2 profit.

BEML shares also slipped 0.6% following the results but have gained 47.5% so far this year. Jupiter Wagons' shares, on the other hand, have risen by 47.8%.

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