>BEML: Will supply intermediate metro coaches to Delhi Metro Rail Corporation

■  Metro orders
BEML has recently bagged orders worth Rs 318 crs for supplying 40 metro cars (10 trains of 4 cars each) to Jaipur Metro Project. The Company expects to receive some more orders totaling Rs 60 crs from this project in future. It is also designing and developing metro cars for upcoming metro projects in Tier II cities.


BEML will supply intermediate metro coaches to Delhi Metro Rail Corporation. It is also targeting orders from Bangalore, Hyderabad and Kolkata rail projects, besides participating in international projects in Dubai, Abu Dhabi, Qatar, Colombo, Malaysia and Dhaka.


■  Railway business hive-off
BEML is planning to hive off its railway business into a separate Company to tap the growing demand for rolling stock over the next decade. It has emerged as the only Indian Company to manufacture metro rail cars, which has helped in bagging orders from Delhi, Bangalore and Jaipur metro projects. The company is also exploring opportunities in aluminium rail wagons manufacturing and has taken trial project for Nalco. Demand for mining equipments from Indonesia continue to soar which made BEML to rework its growth strategy. It plans to open an after - sales service centre cum depot at the coal mining belt of Kalimantan in
Indonesia this fiscal. A new assembling unit or an acquisition of existing unit in Indonesia by next fiscal is also on the anvil.


■  Flurry of earthmoving equipment orders
BEML expects order intake of earthmoving equipments to improve this year, led by new product introductions, recovery in domestic mining sector and strong overseas demand. It launched mining equipments in Thailand and other neighbouring countries like Myanmar, Laos,
Cambodia etc through marketing tie up with Paragon Company Ltd, a Thailand based entity. Similarly, it unveiled high - end products such as dozers, dumpers, motor grader etc in China this year.


We estimate the earthmoving equipment division to grow by 12% this year, thus reversing the declines of last two years. The next year is projected to be tad better as plans to enter new markets in South East Asia, Africa and South America for supplying earthmoving equipments for mining sector fructifies. Margin which saw an erosion of 450 bps in FY11 is estimated to rise by 180 bps to 14.5% in current year.


To read full report: BEML
RISH TRADER