BEML Limited shares plunged over 9% in trade after the company reported weak Q3 results, with profitability taking a sharp hit despite strong revenue growth. The disappointing operational performance came in well below Street expectations, triggering heavy selling pressure on the stock.
BEML reported a net loss of Rs 22.4 crore for the third quarter, sharply contrasting with a profit of Rs 24 crore in the same period last year. The loss was, however, narrower than the CNBC-TV18 poll estimate of a Rs 48 crore profit, reflecting a significant miss on earnings expectations.
On the revenue front, the company posted a better-than-expected performance. Revenue from operations rose 23.7% YoY to Rs 1,083 crore, compared with Rs 875.8 crore in Q3 of the previous year. This figure also exceeded the CNBC-TV18 poll estimate of Rs 999 crore, indicating healthy execution and order inflows during the quarter.
Operational profitability remained the key area of concern. EBITDA fell 94% YoY to Rs 4 crore, sharply lower than Rs 60.4 crore reported in the year-ago quarter. This was also far below the Street expectation of Rs 89 crore, highlighting intense cost pressures and weak operating leverage.
As a result, EBITDA margin slipped to just 0.3%, compared with 6.9% in Q3 last year and well below the CNBC-TV18 poll estimate of 8.9%. The steep margin contraction weighed heavily on overall profitability and investor sentiment.
