BrahMos Records Profit

[skysthelimit]

BrahMos Records Profit

After running on losses ever since its formation in 2007, missile unit BrahMos Aerospace Thiruvananthapuram Ltd (BATL) had some good news on Friday.
In 2014-15, BATL has achieved a sales turnover of `43 crore against the previous fiscal’s sales of `32 crore. The ailing company has recorded an operating profit of `6 lakh, while the net profit stood at `78.73 lakh in the 2014-15 financial year, Sudhir K Mishra, CEO, BrahMos Aerospace Pvt Ltd (BAPL) said after chairing BATL’s annual board meeting here.

“For a company that had been referred to the Board of Industrial and Financial Reconstruction (BIFR) in September 2014, this is encouraging news,” Mishra told ‘Express.’ “This company has turned around after years of continuous loss-making. The credit for this goes to the employees, technicians and engineers. The state government also has given us ample support. It proves that this company has the inherent capability to deliver,” he said. “The bad news is that with accumulated losses to the tune of `24.2 crore, BATL is still within the purview of BIFR. But we hope to come out of it within three to four years. We are still a sick company, but a profit-making sick company,” he said.

“For the 2015-16 fiscal, BATL has set itself a sales target of `50 crore and is exploring new markets in India as well as abroad,” Mishra said. Within India, BATL is fishing for orders at Hindustan Aeronautics Ltd, Aeronautical Development Agency, Indira Gandhi Centre for Atomic Research and Bhabha Atomic Research Centre.

“We are also exploring the European and West Asian markets,” Mishra said. BATL was formed in 2007 by taking over the state government-run Kerala Hi-Tech Industries Ltd, Chakkai, for a token `1. But the company was bogged down by operational and administrative issues, leading to the reference to the BIFR in September 2014.

Loss-making BrahMos Records Profit -The New Indian Express

 

[Ragnar]

Good luck running any business in Kerala.

 

[The_Sidewinder]

If India starts exporting scale downed versions to friendly countries such as Vietnam, Brahmos will increase profit many folds. These 24 croe is a very negligible sum.

 

[Luca1]

If India starts exporting scale downed versions to friendly countries such as Vietnam, Brahmos will increase profit many folds. These 24 croe is a very negligible sum.

There is no need to scale down Brahmos as itself is a scale down of a Russian missile.

 

[The_Sidewinder]

There is no need to scale down Brahmos as itself is a scale down of a Russian missile.

Thanks for the info.
Note: Robin Lawley fat & Ugly

 

[livingdead]

who were the primary buyers... if it is GoI, then its just moey exchanging from left hand to right.

 

[sathya]

So far close to 50 brahmos test fired alone..

How many are inducted in forces..


Why is it loss making ?

 

[uparyupari]

who were the primary buyers... if it is GoI, then its just moey exchanging from left hand to right.

That is how any economy operates, by money changing hands.

The "GoI" is not an mysterious unknown body, its made up of thousands and millions of people who is involved in this money exchange. The number of times the money exchange hands is what is counted as GDP. It does not matter if the people who is involved in the money exchange is working for the govt. or for a private individual.

So far close to 50 brahmos test fired alone..
How many are inducted in forces..
Why is it loss making ?

I am guessing its because of Capital cost. Once that is recovered, the profits must be significant.

 

[livingdead]

That is how any economy operates, by money changing hands.

The "GoI" is not an mysterious unknown body, its made up of thousands and millions of people who is involved in this money exchange. The number of times the money exchange hands is what is counted as GDP. It does not matter if the people who is involved in the money exchange is working for the govt. or for a private individual.



I am guessing its because of Capital cost. Once that is recovered, the profits must be significant.

its an economic activity, no doubt, what is the point of talking about profit and loss. They can double the price next year and profit will increase by 100 percent. Govt is guaranteed buyer for the missile.

 

[uparyupari]

its an economic activity, no doubt, what is the point of talking about profit and loss. They can double the price next year and profit will increase by 100 percent. Govt is guaranteed buyer for the missile.

GoI is also a majority stake holder in BrahMos so its unlikely that such increase in price will be sanctioned. End of the day fair trade practice governs any trade.