Exclusive interview with Shantanu Roy, Chairman and Managing Director, BEML Ltd

These factors, combined with India's increasing investments in metro, railway, and defense sectors, position BEML for continued success and growth in the years to come.

How did your financial performance fare over the past year, and what are your plans for the upcoming financial year?

In a remarkable display of financial strength, BEML Ltd reported a substantial 62.8% increase in net profit for FY 23-24, reaching ₹256.8 crore compared to ₹157.7 crore in the previous financial year. This surge in net profit underscores our effective strategies and operational excellence.

Our revenue also saw a notable boost, rising by 9.1% to ₹1513 crore, up from ₹1129.4 crore in the previous fiscal year. This growth highlights our strong market presence and successful execution of business plans. Additionally, our EBITDA registered an impressive growth of 29.2%, standing at ₹370.4 crore compared to ₹286.7 crore in the prior year. This performance reflects our enhanced operational efficiency and improved profitability.

We've demonstrated substantial improvements in our margins and cost management. Our net margin increased to 24.5% from the previous year’s 20.7%, and our gross margin improved by 260 basis points year-over-year to 49.5%, driven by a favorable segment mix. Cost optimization has been a key focus, with employee costs dropping by 3% year-over-year, marking the seventh consecutive quarter of decline. Wage costs for FY 24 decreased by 20.27% compared to the previous year, showcasing our efficient cost management practices.

In terms of shareholder value, we declared a stellar dividend of 205% for FY 24, underscoring our commitment to value creation for our investors.

Looking ahead, we've undergone a major organizational restructuring, establishing 11 strategic business units and 2 micro business units. This reorganization aims to enhance our focus on revenue generation and achieve targeted revenue growth in the near future. Strategically, we are positioning ourselves to expand into new sectors such as shipping, maritime, and infrastructure. This diversification is expected to drive volume growth and generate substantial returns for our shareholders in the coming quarters.

Tell us more about your recent dispatch of Metro cars to Mumbai Metro, and what are the new features in those cars?

The Honourable Raksha Rajya Mantri, Shri Sanjay Seth, recently flagged off a new driverless MRS-1 Metro trainset at BEML’s Bangalore plant, marking another milestone in our Rail business division. This trainset is the 55th to be supplied to the Mumbai Metro Rail Metropolitan Authority for operation on Line 2 and Line 7.

BEML secured the order amidst stiff global competition for the design, manufacture, supply, testing, commissioning, and training of 96 trainsets (6-car trainsets) of standard gauge Metro cars. Our team is proud to contribute to the nation’s infrastructure development and is committed to excellence and innovation in all our endeavors.

BEML is the first Indian rolling stock manufacturer to design, develop, manufacture, and supply driverless trains. We take immense pride in supplying these state-of-the-art driverless trains to the prestigious Mumbai Metro Line 2 and Line 7. During the design stage, we ensured that the Metro train is optimized for maximum passenger comfort, safety, and energy efficiency, meeting stringent global standards. The 6-car trainset has a capacity of carrying about 2,306 passengers, with seating for 298 passengers.

Modernized Features of Driverless Trains

• 6-Car Formation: Streamlined design for efficient passenger transport.
• Stainless Steel Car Body: Enhanced durability with colored graphic film and aesthetically appealing interiors.
• Roof-Mounted Saloon Air Conditioner: Ensures a comfortable climate within the train.
• IP-Based Systems: Advanced Passenger Announcement (PA), Passenger Information System (PIS), and Passenger Saloon Surveillance (PSSS).
• Dynamic Route Maps: LCD-based displays for real-time route information.
• Automatic Doors: Electrically driven and synchronized with platform screen doors for increased safety.
• Modern Interiors: FRP panels, stainless steel grab poles, grab rails with strap hangers, and stainless steel seats.
• Comfortable Seating: Seats with lumbar support for better passenger comfort.
• Noise Reduction: Floating floors with rubber coverings.
• Bicycle Parking: Facilities in each car for end-to-end connectivity.
• Energy-Efficient Lighting: LED-based and auto-dimming for passenger areas.
• Convenience Features: USB mobile charging systems and Wi-Fi in all cars.
• Accessibility: Dedicated space for wheelchair passengers.
• Seamless Interconnection: Gangways with flexible interior panels for easy movement between cars.
• Fire Safety: Detection systems with automatic warnings, meeting the latest international standards.
• Emergency Evacuation: Front emergency door for passenger safety.
• Safety Devices: Obstruction deflection and derailment detection systems.
• Passenger Communication: Passenger Alarm Device (PAD) for communication with train operators and OCC.
• Advanced Signaling: CBTC-based signaling for driverless operations (Unattended Train Operation, GoA 4).
• Indigenous Manufacturing: Bolsterless bogies for the MRS1 project, made by BEML.

What is the status of Vande Bharat Sleeper cars? What are the special features of the train, and how soon can we expect to see the train running on tracks for passengers?

The Hon’ble Union Minister for Railways, Shri Ashwini Vaishnaw, marked a historic moment by inaugurating the car body structure of India’s pioneering Vande Bharat Sleeper trainset in March 2024. This milestone, achieved by our Bangalore-based rail unit, signifies a major advancement for Indian Railways and the nation.

The Vande Bharat Sleeper version will soon provide commuters with enhanced mobility and comfort, meeting global standards. The car body structure is crafted with high-grade Austenitic stainless steel and features crash-worthy elements integrated into the crash buffers and couplers. All materials and aggregates in the trainset comply with stringent safety standards, adhering to the Fire standard requirements as per EN45545 HL3 grade.

Engineered with meticulous attention to detail, the Vande Bharat Sleeper Trains designed by BEML prioritize both aesthetic appeal and functionality in their interiors, sleeper berths, and exteriors. From the front nose cone to interior panels, seats and berths, interior lights, couplers, gangways, and beyond, every element is designed to meet the exacting standards of the sleeper trainset. The prototype is getting ready and we expect to complete the order for 10 rakes during the financial year.

BEML has spearheaded the development of critical systems, including electrical, propulsion, bogie, exterior plug doors, brake systems, HVAC, and more, ensuring seamless integration and optimal performance throughout the trainset. The entire manufacturing and assembly process is undertaken at BEML, underscoring our commitment to quality and precision.

The success of this project hinges on the meticulous design of aesthetically appealing interiors and the selection of competent GFRP panels, demonstrating BEML’s unwavering commitment to excellence and innovation in rail transportation.

Salient features of Vande Bharat Sleeper Trainsets

• Total cars per Trainset: 16
• Maximum operational speed during service: 160 kmph
• Maximum operational speed during testing: 180 kmph
• Minimum deceleration during full-service braking following jerk limit: 0.8 m/s square
• Maximum deceleration at any speed: 1 m/s square
• Gauge: Broad Gauge 1676 mm