BEML executes 'catch-up' plan to make up for production backlog

Chairman and MD Deepak Kumar Hota informed that BEML has put in place a "catch-up plan" to make up for the production backlog during COVID, with its manufacturing plants now operating near normal. The lockdown has impacted BEML's turnover and production due to the closure of manufacturing facilities, disruption in spares and service business, non-receipt of items on account of supply chain disruptions, restrictive movements and non-availability of required trailers. In addition to loss of revenue, due to distressing cash flow operations, inflows from customers have stopped or slowed down while outflows, especially to MSME and other vendors, are continuing resulting in cash crunch. The Bengaluru-headquartered company under the Ministry of Defence, which has bagged ₹842 crore mobility vehicles order from Pinaka projects, has set a revenue target of over ₹4,000 crore for 2020-21, up from ₹3,029 crore in the preceding fiscal. There is a shortfall of revenue vis-a-vis its plan in the first quarter but the company is making the best efforts to make up this shortfall from the second quarter onwards and also trying to reduce cost through various cost optimization strategy and austerity measures. Currently its manufacturing plants are operating near normal and it expects to get additional orders of about ₹3,000 crore by the end of the current fiscal and has on hand orders worth over ₹10,000 crore.