BEML Q3 Results: PSU Stock slides 10% after net loss; operating profit nearly wiped out

Shares of BEML, the state-run company, fell as much as 10% on Friday, February 6, after it reported a net loss during the December quarter, while its operating profit was nearly wiped out.

BEML reported a net loss of ₹22.4 crore compared to a net profit of ₹24 crore during the same quarter last year. A CNBC-TV18 poll had projected the figure to be a net profit of ₹48 crore.

Revenue for the quarter increased by 23.7% from last year to ₹1,083 crore from ₹875.8 crore earlier. The figure is higher than the CNBC-TV18 poll projection of ₹999 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was nearly wiped out during the quarter, declining by 94% to just ₹4 crore, compared to ₹60.4 crore last year. A CNBC-TV18 poll had projected the figure to be ₹89 crore.

BEML reported a sharp jump in its other expenses, which increased from ₹143 crore in the base quarter to ₹255 crore during the December period. Employee benefit expenses increased to ₹222 crore from ₹206 crore, while cost of materials consumed also increased to ₹559 crore from ₹395 crore earlier.

EBITDA margin narrowed to 0.3% from 6.9% last year and is well below the CNBC-TV18 poll of 8.9%.

Shares of BEML are now trading 8% lower after the earnings announcement at ₹1,607.4. With this, the stock has turned negative in terms of returns over the last 12 months.