BEML Limited — Investor Meet, 23-06-2025: Analysts/Institutional Investor Meet/Con. Call Updates

BEML has announced a doubling of its order book guided by strong tender activity in Rail & Metro, Defense, and Mining segments, targeting a 20% CAGR growth. FY25 margins are expected to improve by 150 bps, driven by a higher contribution from sustenance business (spares and services), material cost reduction, and a shift towards system-based products. Defense orders surged 40% with an increasing focus on indigenization, while Rail & Metro plans to deliver 20 train sets this year, supported by capacity expansions at Bangalore and Bhopal facilities targeting 700-800 cars annually. Challenges include improving inventory turnover, quality in forgings and castings, and talent management. Capex guidance stands at ₹1800 Cr over five phases, with ongoing efforts in technological upgrades and digital transformation. Management remains confident on order inflows, margin expansion, and steady execution while highlighting cash flow variability mainly from metro contract milestones.