BEML inks MoU for cargo system with DMRC, Deendayal Port but stock falls

BEML shares slipped 2.12% to close at ₹4,326.15 despite the firm announcing the signing of a quadripartite memorandum of understanding involving Deendayal Port Authority, Delhi Metro Rail Corporation (DMRC), and Umeandus Technologies India Private Ltd.

The MoU establishes collaboration on the Real Time Automatic Cargo Evacuation System (e-FTS and Enhance Freight Transport System), with Deendayal Port Authority acting as the client and DMRC as the lead member. BEML and Umeandus Technologies will serve as execution partners for the pilot project, focusing on enhanced freight handling solutions.

"BEML Limited has entered into a quadripartite Memorandum of Understanding (MoU) with M/s Deendayal Port Authority (DPA), M/s Delhi Metro Rail Corporation (DMRC) & M/s Umeandus Technologies India Pvt. Ltd. (UTIPL). The MoU parties have formed an alliance covering the areas of Real Time Automatic Cargo Evacuation System (e-FTS, Enhance Freight Transport System) wherein DPA is the client and DMRC (Lead member), BEML & UTIPL are execution partners for development of pilot project for Real Time Automatic Cargo Evacuation System (e-FTS, Enhance Freight Transport System)," said BEML.  

Meanwhile, the company reported a net loss of ₹64 crore in Q1 against previous year's net loss of ₹70.5 crore for the same quarter. Revenue for the period held steady at ₹634 crore,  reflecting a sequential topline decrease of more than 60%. BEML also reported an EBITDA loss of ₹49 crore, marginally higher than the expectation of a ₹45 crore loss and slightly improved from the ₹50.1 crore loss recorded in the same quarter last year.

BEML’s recent developments, including the alliance for the cargo evacuation system and recent export orders to the CIS region and Uzbekistan, reflect its continuing efforts to expand business avenues despite near-term financial pressures. The announcement comes as the company aims to improve operational efficiency and explore new technology-driven opportunities in cargo management.