State-owned heavy equipment manufacturer BEML Ltd expects the rail and metro segment, along with defence, to be the biggest contributor to its revenue in the near future as it looks to bag export orders for Vande Bharat and metro trains in a few years.
“The priority is to roll out the indigenous Vande Bharat trains first. But next year, we will try and should expect something on the export front,” BEML (formerly Bharat Earth Movers Ltd) chairman Shantanu Roy said.
The company, which reorganised operations this fiscal, is keen to accelerate the make in India initiative. It is working on a few opportunities in the Middle East, South America, and the Asean region for rail and metro exports, Roy said. “The ultimate aim is to have exports around 10% of our top line from the present nearly 4%.”
BEML operates in three key segments and has carved out 11 strategic business units (SBUs) to streamline growth. These segments include – mining and construction (spares and services and hydraulic and power), defence (armoured, high mobility vehicles, aerospace, and engines), and rail and metro (commuter rail and metro rail).
Each SBU will be headed by a CEO who will be empowered for faster decision-making and better control over operations. The company, which saw its consolidated net loss narrowing to ₹70 crore for the quarter ended on June 30, 2024, posted a 10% growth in topline.
“As far as profitability is concerned, last year’s was a much better performance than other years,” Roy said. “This year, we have given a guidance of 100 basis points for Ebitda growth at 13%. We aim to reach 16-17% in the near future.”