BEML, a state-owned company which makes heavy equipment used in mining and infrastructure projects, announced that it has entered the Thai market. It has appointed a distributor Paragon Machinery as its distributor in the country and Paragon will market BEML products –such as loaders, excavators, dump trucks, and dozers in Thailand and neighbouring countries such as Myanmar, Laos and Cambodia.
The company announced its entry into Thailand with the supply of 21 trucks to a Thai power utility, Electricity Generating Authority of India. The trucks and a 10-year maintenance contract will yield Rs 120 crore in revenues for BEML. They will be deployed in the lignite mines of EGAT, which will supply the fuel for captive power generation for EGAT.
The company has been facing a slowing in its sales growth, perhaps explained by the issues being faced by infrastructure projects: lack of investment demand, environment-related delays and the effect of rising interest rates on project implementation.
In the June 2011 quarter (Q2), the company’s sales rose by 5% over the year ago period to Rs 554 crore, its operating profit rose by 35% since material consumption and other expenditure rose at a lower rate. Its net profit rose by about 10%. If the current order reflects in the September quarter, it should contribute to higher growth.