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BMW Industries shares soar nearly 12% on reporting its highest-ever net profit in FY25

BMW Industries shares soar nearly 12% on reporting its highest-ever net profit in FY25

Mint21-05-2025
Shares of BMW Industries surged as much as 11.7 percent in intra-day trade on Wednesday, May 21, after the company reported its highest-ever profit after tax (PAT) for the financial year ended March 2025 (FY25). Strong full-year performance, a positive business outlook, and the announcement of a final dividend contributed to renewed investor interest in the small-cap steel processing company.
BMW Industries posted a 17.7 percent rise in PAT to ₹ 75 crore in FY25, compared to ₹ 63.75 crore in FY24. Total income for the year grew 6 percent to ₹ 638.7 crore from ₹ 602.5 crore a year earlier. The company also declared a final dividend of 43 paise per share, subject to shareholder approval.
While the annual results were strong, Q4FY25 performance was slightly subdued on the profitability front. The company reported a 7.4 percent YoY decline in PAT to ₹ 17.6 crore, down from ₹ 19 crore in Q4FY24. However, on a sequential basis, profit rose 2.3 percent from ₹ 17.2 crore in Q3FY25.
Total income in Q4 grew 17.4 percent YoY to ₹ 161.5 crore and 8.6 percent sequentially. Operating performance, however, was mixed. EBITDA declined 3.7 percent YoY to ₹ 37.76 crore, while margins contracted 514 basis points to 23.4 percent due to higher input and operational costs.
Commenting on the company's performance for FY25, Mr. Ram Gopal Bansal, Chairman of BMW Industries Limited, expressed satisfaction with the company's growth trajectory and strategic progress.
'We are pleased to inform you that BMW Industries Ltd. has maintained steady progress in FY25. The Company reported a total income of ₹ 63,869 lakhs in FY25. Profit After Tax for the year stood at ₹ 7,505 lakhs, with a margin of 11.8 percent, reflecting robust growth of 17.7 percent compared to the previous fiscal,' Bansal said.
He further announced that the Board of Directors has proposed a final dividend of 43 paise per share, subject to shareholder approval.
Highlighting key milestones achieved during the fiscal year, Bansal said the company renewed multiple contracts with long-standing customers, which would extend through FY29.
'These contracts stand as a testament to the enduring trust placed in us by one of India's most distinguished industrial institutions,' he noted. 'This engagement further consolidates our position as a reliable and value-accretive partner in the steel value chain.'
Bansal also shed light on the company's forward-looking investments, particularly a new greenfield project underway in Bokaro, Jharkhand. The facility, focused on coated/plated steel, will be developed with a capital outlay of ₹ 803 crore.
'With this strategically located facility set to commence Phase 1 operations towards the end of FY26, we are also honoured to be qualified under the PLI Scheme 1.1 of the Honourable Ministry of Steel, Government of India,' he said.
Looking ahead, Bansal emphasized BMW Industries' transition from a purely value-added conversion business to a diversified steel processing model.
'This shift represents not just a broadening of our revenue streams, but a structural transformation in the way we operate and create value,' he said. 'While this transition may be gradual, it sets the foundation for long-term sustainable growth. We remain committed to disciplined execution, prudent capital allocation, and delivering long-term value for our stakeholders.'
With record profits, long-term contracts secured, and a bold investment roadmap in place, Bansal expressed optimism about BMW Industries' ability to capitalize on emerging opportunities within the steel value chain.
The smallcap stock rose as much as 11.7 percent to its day's high of ₹ 59.75. Despite the sharp rally on Wednesday, BMW Industries remains 24 percent below its 52-week high of ₹ 79.05, hit in August 2024. That said, the stock has gained 52 percent from its 52-week low of ₹ 39.36, recorded in March 2025.
In the last one year, the stock is still down over 16 percent, though sentiment appears to be turning. It has gained over 20 percent in May so far, reversing a three-month losing streak. The stock had declined 1 percent in April, 3.7 percent in March, and 12 percent in February, but rose 4.5 percent in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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