Bharat Forge posts Rs 270-cr net profit for September quarter

The auto components major on Friday reported a consolidated net profit

Auto components major Bharat Forge Ltd on Friday reported a consolidated net profit of Rs 270.45 crore for the second quarter ended September 30.

The company had posted a consolidated net loss of Rs 1.32 crore in the corresponding period last fiscal, Bharat Forge said in a regulatory filing.

Its consolidated revenue from operations during July-September 2021 stood at Rs 2,385.62 crore as compared with Rs 1,376.1 crore in the year-ago period, it added.

Total expenses in the quarter were higher at Rs 2,072.61 crore as against Rs 1,376.3 crore in the corresponding quarter last fiscal. Cost of raw materials and components consumed stood at Rs 1,066.2 crore as against Rs 471.3 crore in the same quarter a year ago, the company said.

"During Q2 FY22, demand continued to remain robust across most of our end markets... However, the latter part of the quarter was impacted by semiconductor shortage and logistics related issues," Bharat Forge Chairman and Managing Director B N Kalyani said.

On the outlook, he said, "Looking ahead into Q3 FY22, end demand continues to remain robust across segments, but to what extent the semiconductor and other supply chain issues will weigh in on OEM's (original equipment manufacturer) ability to produce is uncertain."

Sequentially, Kalyani said, "We expect the company's around 75 per cent exposure to the domestic markets and export industrial segment will continue to do well, while the performance of the export automotive business will in all probability witness a decline."

The company said its automotive business in India was impacted with the semiconductor chip shortage disrupting the momentum in Q2 FY22, especially in the passenger vehicle segment.

Similarly, in the international automotive business, the recovery in the trucking industry has been temporarily disrupted due to semiconductor shortage and logistics-related issues, it added.