BEML targeting 20% revenue growth in FY24 and 20-25% in FY25

State-owned BEML on Friday (January 5) said the company is targeting 20% revenue growth in FY24 and 20-25% in FY25.

In an exclusive interview with CNBC-TV18, Shantanu Roy, Chairman and Managing Director (CMD) of BEML, outlined the company's ambitious plans for revenue growth and order book expansion in the upcoming fiscal years.

BEML, a prominent player in both the defence and metro manufacturing sectors, anticipates significant opportunities in the next 5-7 years. Shantanu Roy highlighted a potential ₹30,000-40,000 crore opportunity in defence orders alone.

The company is optimistic about the manufacturing scenario for defence production and envisions a substantial order size of ₹40,000-45,000 crore in the rail and metro sectors.

BEML's mining sector, a consistent contributor to the company's top line, is expected to maintain steady growth.

Roy noted that mining accounted for 50% of the company's revenue in the previous year and is projected to contribute around 40-50% this year. The focus on the indigenisation of high-end mining equipment aligns with government policies, ensuring a stable trajectory for this vertical.

As of now, BEML's order book stands at ₹12,500 crore, and the company is eyeing an additional ₹3,500 crore in orders within the next three months.

Roy reaffirmed his commitment to closing the fiscal year with a robust ₹14,000 crore order book. Looking ahead to FY25, the company envisions ending the year with an order book ranging between ₹20,000-25,000 crore if all goes as planned.

Highlighting the importance of government initiatives, Roy expressed BEML's expectations from Union Budget 2024 for sustained impetus in defence and infrastructure spending. The company considers defence, rail, and metro infrastructure as "sunrise sectors" and hopes the government maintains the momentum in these areas.

The top three outlays from Union Budget 2023 - defence, rail, and metro infrastructure - align with BEML's core focus, and the company looks forward to continued support in these crucial sectors.

"As far as BEML is concerned, the key expectation is that this impetus on defence spending, infra spending should keep going because the top three budget outlays for 2023 was defence, rail and metro infrastructure. And these are the three verticals, these are the three areas which I call the sunrise sectors where we are in. We'll be hoping that the government keeps up the same momentum in these three sectors so that it augurs fantastically for companies like BEML," he said.