Bharat Earth Movers Ltd. expects to end the current fiscal year to March 2007 with a net profit of 3 billion rupees and revenue of 26 billion rupees, a top official said on television.

“We are pretty confident that we will reach a mark of 26 billion rupees in the topline (by the end of this finanacial year),” Chairman and Managing Director V.R.S. Natrajan said on business news channel CNBC TV18.

“Bottomline should be not less than 3 billion rupees and order book position should also be beyond 3 billion rupees,” he added. The company on Tuesday reported a 5 percent fall in net profit to 529.7 million rupees for the quarter to December 2006, while net sales also fell nearly 2 percent to 5.5 billion rupees. The company has also formed a joint venture to get into contract mining.

“Our board has approved a joint venture to foray into contract mining with a company called Midwest Granite in India and SMJ Indonesia,” he said.

BEML will hold 45 percent in the venture, Midwest will hold 29 percent and SMJ Indonesia will hold 26 percent.

“This contract mining will be a great opportunity for BEML… we may be doubling the turnover every three years,” he said.

The heavy earth moving equipment maker also approved investments with tyre manufacturers in India.

“We are going to work with two tyre manufacturers in India to produce the OTR (off-the-road) tyres which are in huge shortage, along with Coal India,” he said. Coal India will invest about 1.5 billion rupees and BEML about 500 million rupees.

“These tie-ups will help us to improve our business,” he said.

source : Reuters

Find More Mining News :