Views on BEML Limited 1QFY2016 Results - Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on BEML Limited 1QFY2016 Results:

BEML reports EBITDA level losses, numbers disappoint us

"BEML reported standalone sales of INR 590cr, up 17.7% yoy (lower than our expectation of INR 595cr). We were expecting the turn-around trend at EBITDA level (as seen in the previous 2 quarters) to continue in 1QFY2016 also. We were expecting 3% EBITDA margins for the quarter against which the company reported 9.7% negative EBITDA margins. The impact of losses at EBITDA level was seen at the PAT level too, as the company reported net loss of INR 75cr, against our expectation of INR 2cr net profit. Notably, the quantum of loss has narrowed down on yoy basis to INR 75cr.

Despite a miss on the 1QFY2016 numbers, considering the company's strong market positioning across business segments and improving award activity environment, we are optimistic that BEML should report order wins going forward. Increase in the order book, should translate to better execution and again lead to turn-around in profits. We continue to maintain our NEUTRAL rating on the stock."

Shares of BEML LTD. was last trading in BSE at Rs.1376.8 as compared to the previous close of Rs. 1380.7. The total number of shares traded during the day was 24941 in over 2212 trades.

The stock hit an intraday high of Rs. 1419.35 and intraday low of 1363.1. The net turnover during the day was Rs. 34750298.

Source : Equity Bulls

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