Bharat Forge consolidated net profit surges 9.3% to Rs 232 crore in Q4FY22

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Auto components major Bharat Forge Ltd on Monday reported a 9.3 per cent increase in its consolidated net profit at Rs 231.86 crore in the fourth quarter ended March 2022, driven by higher revenue.

The company had posted a consolidated net profit of Rs 212.12 crore in the same period of the preceding fiscal, Bharat Forge said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 3,573.09 crore as against Rs 2,082.85 crore in the year-ago period, it added.

Total expenses in the fourth quarter were higher at Rs 3,295.61 crore as against Rs 1,840.63 crore in the same period a year ago.

In the entire fiscal year ended on March 31, 2022, the company's consolidated net profit was at Rs 1,077.06 crore. It had posted a consolidated net loss of Rs 126.97 crore in FY21.

For FY22, revenue from operations was at Rs 10,461.08 crore as compared to Rs 6,336.26 crore, it added.

Bharat Forge said its board of directors, at a meeting held on Monday, has recommended a final dividend of Rs 5.50 per equity share of Rs 2 each at 275 per cent for the financial year ended March 31, 2022.

Bharat Forge chairman and managing director B N Kalyani, in an investor presentation, said, "In FY22, the Indian operations have secured new orders worth around Rs 1,000 crore across automotive and industrial applications. This includes a healthy mix of existing and new customers across traditional and new products."

In the international operations, he said, new orders worth USD 150 million have been secured across steel and aluminum forging operations in north America.

"These order wins from marquee OEMs (Original Equipment Manufacturers) provides a lot of growth visibility in the medium to long term. The EV (Electric Vehicle) vertical has secured orders from a global EV OEM for supply of aluminum castings and its maiden order from an Indian OEM for supply of DC-DC converters," Kalyani said.

On the outlook, he said, "At a consolidated level, we expect FY23 to be a strong year characterised by top line growth coupled with strong cash flows, ramp up of the US aluminium operations, revenue contribution from the newer verticals and a further diversified revenue mix."

For the standalone business, Kalyani the company expects continued growth in the key markets across all sectors. Easing of cost pressures and supply chain tightness will provide a fillip to the end demand across geographies.