Bharat Forge Q2 net dips 48% to Rs 141 cr on lower than anticipated sales

Bharat Forge on Monday reported a 48 per cent decline in its consolidated net profit to Rs 141 crore for the second quarter that ended September 30, 2022.

The company had posted a net profit of Rs 270 crore in the July-September period of last year.

Revenue from operations rose to Rs 3,076 crore in the period under review from Rs 2,386 crore in the September quarter last year, Bharat Forge said in a regulatory filing.

The performance of the European operations has been adversely impacted mainly by lower than anticipated sales volumes for the aluminium forging business. The new greenfield aluminium forging facility in North America is still in a ramp-up phase and operating at utilisation levels below EBITDA breakeven levels, Bharat Forge, Chairman & Managing Director B N Kalyani stated.

The company expects this business to turn around in the second half of the fiscal, he added.

Looking ahead into Q3 FY23, we expect stable performance across both the domestic and export markets driven by higher-end market demand as compared to Q2 FY23. The European aluminum operations performance will show gradual recovery over the next two quarters, Kalyani said.

The company said its board has declared an interim dividend of Rs 1.50 per share of a face value of Rs 2 each.

Shares of the company were trading 2.98 per cent down at Rs 860.30 apiece on the BSE.