Bangalore-based defence PSU BEML has reported a 55.3 per cent drop in its net profit at Rs 70.25 crore for the fourth quarter-ended March 31, 2011, compared to the corresponding quarter last fiscal. The company has also reported a 23.3 per cent drop in its total sales income at Rs 1,152 crore as against Rs 1,502 crore reported during the year ago period.
During the fourth quarter of fiscal 2010-11, BEML reported an operating loss of Rs 47 crore as against the operating profit of Rs 142.8 crore in the year ago period.
The company’s profit took a beating mainly due to the huge rise in employee costs. Its staff cost was up by 81.2 per cent to Rs 267 crore during the fourth quarter.
BEML concluded wage settlement with its employees’ unions at Bangalore, Mysore, KGF complexes and marketing division at the corporate office in Bangalore. The settlement will be in force for a period of 10 years with retrospective effect from January 1, 2007, and around 9,382 employees would benefit from it. The settlement will cost the company about Rs 60 crore per annum.
