BEML Q2 Results Review - Profitability Improves Despite Low Execution: Reliance Securities
We believe BEML is well-placed to capitalize on the imminent opportunities in mining, defence and railway and metro segments.
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Reliance Securities Report
BEML Ltd. reported a revenue of Rs 8 billion, down 20% YoY (up 20% QoQ) in Q2 FY23, lower than our estimate of Rs 11.5 billion.
Ebitda increased by 57% YoY (Ebitda loss of Rs 558 million QoQ) to Rs 418 million (our estimates of Rs 457 million), while Ebitda margin expanded by 252 bps YoY to 5.2%.
Profit after tax came in at Rs 163 million, up 53% YoY (net loss of Rs 824 million QoQ) versus our estimates of Rs 288 million. The order book at the end of Q2 FY23 stood at Rs 88 billion (down 18% YoY) while order inflow decreased by 11% YoY to Rs 5 billion during Q2 FY23.
On the balance sheet front, inventory declined to 106 days in Q2 FY23, from 209 days YoY and receivable declined to 55 days in Q2 FY23, from 134 days YoY.
Net working capital fell to 106 days in Q2 FY23, from 236 days YoY. We believe BEML is well-placed to capitalize on the imminent opportunities in mining, defence and railway and metro segments.
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