Bharat Earth Movers Ltd (BEML) is expecting close to 20 per cent growth in business during the current fiscal backed by steady demand from defence and rail and metro segments.
The company is looking to ramp up the share of defence, which currently stands at around 20 per cent, to close to one-third of its total revenue moving forward.
According to Amit Banerjee, Chairman and Managing Director, BEML, mining and construction accounts for nearly 40-50 per cent of its total business at present, while rail and metro accounts for around 30-35 per cent and defence for around 20 per cent.
“The target is to bring all these verticals at par as far as contribution towards revenue is concerned. We have grown by around 15 per cent during the last two years, this year we are expecting close to 20 per cent growth,” Banerjee told businessline on the sidelines of the Global Mining Summit (GMS) and International Mining Machinery Exhibition (IMME) organised by CII in partnership with Ministry of Mines and Coal here on Wednesday.
The company has an order book of close to ₹8000 crore and it expects to close the current fiscal with an order book of around ₹12,000 crore.
“The upcoming Vande Bharat tender is a good opportunity for us and can present an opportunity to make 120-130 train sets,” he said.
Besides, after winning the previous tenders of Bengaluru Metro Railways, BEML is looking at furthering its income from upcoming tenders of Bangalore Metro.
“There is also an opportunity from Chennai where the winner of Metro Rail project will get to make 210 cars at a price of around ₹8-10 crore per car,” he said highlighting the opportunities.
The company hopes to sustain its margins at around 7.5 per cent despite the rise in input cost. This is nearly 250 basis points lower as compared to close to 10 per cent during pre-Covid levels.
BEML is also targeting to increase its revenue and product mix in export markets and is focusing on Kenya. The company so far, had majorly exported products from the mining and constructions vertical to countries such as Sri Lanka and Bangladesh.
“We now want to focus on exploring export opportunities in defence as well as metro railway train sets,” he said.
The official said such opportunities from export markets can come in the form of barter sales or direct government-to-government negotiations.