State-owned BEML Ltd. expects a 30 percent growth in turnover once the government completes its proposed divestment in the company, Chairman and Managing Director DK Hota said in a phone interview.
The government is looking to divest its 26 percent stake in the public sector undertaking in a strategic sale and received in-principal approval from the Cabinet Committee on Economic Affairs (CCEA) in January this year.
The move will unlock value for shareholders and ease some of the structural issues like purchase procedures, various rounds of audit and facilitate faster decision-making and aggressive marketing techniques, among other things, Hota said. However, the company staff has protested against its privatisation on several occasions.
FY18 Outlook
The stock rose nearly 9 percent after reporting a good set of numbers. For the financial year 2017-18, the company targets at least a 20 percent growth both in the bottomline and the topline. . Hota expects the order book to grow to Rs 9,000 crore in FY18 from Rs 8,000 crore in the last financial year.
The company also has am ambitious target of 50 percent growth in both its defence and metro rail businesses in the coming financial year and expects the mining business to see a 10 percent jump.
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