BEML says 20% FY24 revenue growth target achievable despite challenges

State-owned heavy equipment maker BEML is confident of achieving its target 20% revenue growth in the current financial year (FY24) despite supply chain challenges. For the first nine months (9MFY24), the company's revenue grew only around 1.2% year-on-year (YoY) to ₹2,541 crore. To meet the full year revenue target, BEML will have to achieve revenue of roughly ₹2,100-2,200 crore in just the fourth quarter (Q4FY24).

Shantanu Roy, the Chairman and Managing Director of the Bengaluru-based company said the orderbook is robust, so the focus now is on execution and fixing the supply chain issues.

Out of the ₹6,600 crore worth of orders received this year, about 58% are for rail metros, 25% for defence, and 17% for mining, he said, adding that  the total orderbook currently stands at around ₹12,300 crore.

“We anticipate a further order inflow of at least ₹2,000 crores out of which 75% should come from the metro and the balance 25% should come from defence and the mining,” he said.

Roy also maintained a revenue target of ₹5,000 crore from the defence vertical over the next four to five years. In the next one to two years the company anticipates order inflow of at least ₹2,000 to 3,000 crore.

With the government's increased focus on defence, he expects an opportunity size of at nearly ₹40,000 crore for the company's defence vertical in the next 4-5 years.

BEML, which is the second-largest earth-moving equipment manufacturer in Asia, currently has a market capitalisation of ₹13,167.57 crore. Its shares have gained 154% over the past year.