BEML, Syndicate Bank sign MoU for equipment financing

Syndicate bank and BEML have signed a memorandum of understanding (MoU) for financing earthmoving and construction equipment manufactured by BEML. Under the MoU, BEML will nominate Syndicate Bank as a preferred financer for financing its customers.

 The customers under the tie-up arrangement will be provided loans in the range of Rs. 20 to Rs. 300 lakh and preferential pricing by Syndicate Bank. Financing Equipment of BEML will be covered under special scheme of the Bank. Syndicate Bank and BEML expect to book business worth Rs. 100 crore by March 2020.

 In Q3FY19, the company reported net sales of Rs. 923.85 crore as against Rs. 731.51 crore, up 26.29 per cent YoY. The company’s net profit stood at Rs. 44.7 crore in December 2018, up 167.83 per cent from Rs. 16.69 crore in December 2017. The company’s EBITDA stood at Rs. 80.45 crore in December 2018 as against Rs. 45.76 crore in December 2017, registering a growth of 75.81 per cent.

 On Tuesday, the stock of BEML was trading at Rs. 897.95 per share, down 2.8 per cent on the BSE.