 "BEML Q3 results: Profit up marginally at Rs 66.85 cr on higher expenses")
Indian heavy equipment maker BEML reported a modest rise in third-quarter pre-tax profit on Thursday, weighed down by increased input costs.
The state-owned company reported a consolidated profit before tax of Rs 66.85 crore ($8.1 million) in the quarter ended Dec. 31, up nearly 1% year-on-year.
Global steel prices were elevated amid high demand, hurting companies which manufacture machinery and equipment, as steel is a key component in their making.
As a result, BEML's raw material costs surged almost 20%, driving up total expenses by 4% to 10.14 billion rupees.
The company also had tax expenses amounting to Rs 18.65 crore, which led to its net profit dropping 27% from last year.
It did report any tax expenses in the December-quarter last year.
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Companies like BEML benefitted from the Indian government's push for higher capital expenditure in its last full budget in February 2023, before the next general election in this year.
Still, a delay in the company's Mumbai metro rail order hurt the company's revenue, analysts said.
Its revenue climbed a modest 1% to Rs 1,047 crore. BEML did not specify how much of it comes from each segment.
Rival railways coach-maker Jupiter Wagons also reported a third-quarter profit climb. BEML's peers in the defense equipment manufacturing space Zen Technologies and Bharat Dynamics also posted profit rises.
Profits for the three companies climbed between 61% and three-fold.
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