Bharat Forge Q1 net up 60% at Rs 145 cr

Company's net profit stood at Rs 90.60 crore in the same quarter of the previous fiscal

Forging major Bharat Forge (BFL) has recorded a 60% jump in its net profit at Rs 144.97 crore as compared to Rs 90.60 crore for its first quarter ended June 30, 2014 due to higher sales.Total net sales of the company for the quarter stood at Rs 964.33 crore, up by 24.96% as compared to Rs 771.65 crore during the same period 2013-14.

"Currently we are witnessing a strong order pipeline across all product segments especially with global customers. We are creating a strong foundation towards achieving our medium term target of doubling sales by FY18. Looking ahead into Q2, we expect demand to improve across all segment with volumes increasing compared to Q1 FY15, except the domestic automotive market where improvement may take some more time, "said B N Kalyani, chiarman and managing director, Bharat Forge.

BFL continues to focus on enhancing its presence outside of its traditional market and simultaneously focusing on increasing share of business with our existing marquee clients and new client additions.

He added, "This quarter of FY 15 witnessed sequential growth across major product segments and geographies in line with expectation with Industrial segment revenue contribution at 46% for the quarter. The sales improvement coupled with a favorable product mix resulted in improvement in EBITDA (earnings before interest, taxes, depreciation and amortisation) percentage and robust operating cash flow."

According to Bharat Forge, the commercial vehicle market market in North America continues to be robust on back of sustained levels of construction activity & improving economic activity. It is also being aided by the replacement of older fleets with more fuel efficient models. The company is expecting North American truck market to register a strong double digit growth while EU is expected to witness volumes similar to CY 2013.