Bharat Forge Q1 net jumps 34 % at Rs 195 crore

Bharat Forge (BFL) today recorded a jump of 34.73% in net profit at Rs 195 for the first quarter ended as on June 30, 2015, the company said in a filing to BSE. The company's net profit stood at Rs 144.97 crore in the same quarter of the previous fiscal. Its total net sales in the quarter under review stood at Rs 1,103.58 crore, up 14.44%, compared with Rs 964.33 crore a year ago.

"Despite challenging demand environment in the commodity and allied sectors, BFL registered strong performance. Topline growth coupled with strong focus on execution, operational efficiency and better cost control translated into EBITDA margin expansion of 240 bps. The extensive effort on creating internal capabilities to deliver technology differentiation to our customer has helped us increase market share, enhance value addition and with new business sectors and geographies," said B N Kalyani, chairman and managing director, Bharat.

The company has won new export orders in passenger and commercial vehicle segments and on industrial business it has bagged orders from railways and aerospace sectors.

Kalyani is hopeful for better performance in the next quarter. "Looking ahead in Q2, we anticipate demand to be higher compared to Q2FY15 with positive automotive demand while the challenging demand environment in industrial sector will continue for some time. as global economies adjust to the lower commodity price, Kalyani added.