Indian heavy machinery maker BEML's Q2 profit falls as demand weakens
India's BEML reported a 1.5% fall in its second-quarter profit on Monday, hurt by lower demand for its heavy machinery and equipment as manufacturing activity dipped.
The state-owned company makes machinery and products for industries like aerospace, mining, rail and metro and has clients such as Rail Vikas Nigam, Adani Power and Chennai Metro Rail.
India's manufacturing activity growth eased in the last two months of the September quarter as demand softened, according to a survey. Overall growth was hurt by a softer rise in new business and orders.
BEML's consolidated profit fell to 510.3 million rupees ($6.1 million) in the quarter ended Sept. 30, compared to 517.8 million rupees a year earlier.
The company's revenue from operations fell 6.2% to 8.6 billion rupees, after four quarters of rise.
Cost of materials consumed, which makes up more than half of the total expenses, grew 0.2% in the quarter, while total expenses fell by 7% to 8.2 billion rupees.
BEML executed orders worth 8.11 billion rupees during the quarter, compared with 9.10 billion rupees a year earlier.
Rival railway coach-maker Jupiter Wagons reported a 9.3% rise in its September-quarter profit.
BEML's shares were down 0.6% after the results. They have risen 47.5% so far this year, while those of Jupiter Wagons have jumped 47.8%.
($1 = 84.3800 Indian rupees)
