The Hindu Business Line : BEML gets nod for jt mining venture

Corporate Results - HCV/LCV/Tractors
Corporate - Alliances & Joint Ventures
Industry & Economy - Mining & Quarrying
BEML gets nod for jt mining venture

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Bangalore Jan 23 The Bharat Earth Movers Ltd (BEML) board on Friday approved the formation of a 45:55 joint venture contract mining company with a combine of Midwest Granite Ltd, Hyderabad and SMJ Indonesia.

The company will have an authorised capital of Rs 100 crore and an initial paid-up capital of Rs 30 crore, a BEML release said.

With the opening up of coal, non-coal and metal sectors for private sector and MNCs, contract mining is set to grow substantially and offer a big opportunity to equipment makers like BEML in the sale of equipment, spares and services, the company said.

BEML and Coal India Ltd have entered into a sourcing arrangement with an unnamed domestic branded tyre manufacturer for OTR tyres.

These tyres, used in big mining equipment and trucks, are in acute shortage in the country and it takes 18 months to procure the orders, the release said.

Q3 NET DIPS

BEML has posted five per cent dip in profit after tax for the third quarter ended December 2006 to Rs 52.97 crore from Rs 55.78 crore during the corresponding previous period.

Net sales of Rs 589.82 crore showed 6.25 per cent growth over Rs 555.12 crore earlier.

For the nine-month period, net sales stood at Rs 1,603.38 crore (Rs 1,341.51 crore); profit after tax Rs 104.55 crore (Rs 97.27 crore) and profit before tax Rs 160.01 crore (Rs 149.44 crore).

The company has declared 40 per cent interim dividend for 2006-07. It is targeting sales of Rs 2,600 crore in the current fiscal and had an order book position of Rs 2,053 crore as of December-end.