 "BEML Q2 result: Profit falls slightly by 1.9% to Rs 51 cr as demand weakens")
India's BEML reported a 1.5 per cent 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 Rs 51.03 crore ($6.1 million) in the quarter ended Sept. 30, compared to Rs 51.78 crore a year earlier.
The company's revenue from operations fell 6.2 per cent to Rs 860 crore, after four quarters of rise.
Cost of materials consumed, which makes up more than half of the total expenses, grew 0.2 per cent in the quarter, while total expenses fell by 7 per cent to Rs 820 crore.
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BEML executed orders worth Rs 811 crore during the quarter, compared with Rs 910 crore a year earlier.
Rival railway coach-maker Jupiter Wagons reported a 9.3 per cent rise in its September-quarter profit.
BEML's shares were down 0.6 per cent after the results. They have risen 47.5 per cent so far this year, while those of Jupiter Wagons have jumped 47.8 per cent.