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BEML to turn a profit on sales jump in April-June

BEML to turn a profit on sales jump in April-June
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First Published: Fri, Jun 12 2009. 10 47 AM IST
Updated: Fri, Jun 12 2009. 10 47 AM IST
New Delhi: “Heavy earth-moving equipment maker Bharat Earth Movers Ltd. (BEML) expects to register profit in April-June on an expected 40% jump in sales from a year earlier,” its chairman V.R.S. Natarajan said.
In the same period in fiscal 2008-09 BEML posted a net loss of Rs17.43 crore.
“This time we expect it to be positive,” he said on Thursday, declining to put a figure to the profit.
Natarajan also did not comment on the January-March quarter financials, which would be announced by 30 June.
“In the current financial year BEML hopes to get orders worth Rs2000 crore on top of existing Rs5000 crore,” he added.
Overseas plans
“BEML expects to sell Rs100 crore of equipment including high-end mining equipment to China over three years, while imports may rise 50% in the current fiscal,” Natarajan said.
“China is good at making small-end equipment. They don’t have large equipment for mining. So we want to sell our equipment in high-end. Low-end, we will get,” he said.
“BEML aims to import equipments worth Rs150 crore from China in the current fiscal, an increase from last year’s imports worth Rs100 crore,” he added.
Natrajan sees BEML’s imports from China, which are 30% cheaper, touching Rs300-500 crore in next 3-4 years.
“It also expects exportsto Indonesia to rise to Rs100 crore from last year’s Rs70 crore,” he said.
Capex boost
“BEML plans to invest Rs200 crore this year on modernisation and expansion of its facilities and aims to spend another Rs300 crore in next 2-3 years,” he said.
“It will also raise Rs100 crore this fiscal to invest in setting up a manufacturing unit at Palakkad in Kerala to produce defence equipment,” Natarajan said.
BEML recently announced setting up of an assembly unit in Brazil to to make mining, construction, rail and defence equipment.
The firm also plans to invest Rs5-10 crore in its Brazil unit over two years and up to Rs20 crore in Indonesian projects.
“We want to be very conservative. When we go for investment in a foreign country, unless it is sustainable, it will be a complete loss,” Natarajan said.
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First Published: Fri, Jun 12 2009. 10 47 AM IST