Bharat Forge gains after Q4 PAT rises 9% to Rs 231 cr

Shares of Bharat Forge rallied 3.42% to Rs 650.65 after the company reported a 9.3% rise in consolidated net profit to Rs 231.85 crore on a 71.5% increase in net sales to Rs 3,573.09 crore in Q4 FY22 over Q4 FY21.

Consolidated profit before tax grew 25% to Rs 336.6 crore in Q4 FY22 as against Rs 269.26 crore in Q4 FY21.

Total expenses surged 79% to Rs 3,295.6 crore with cost of raw materials consumed rising 68.88% to Rs 1,547.49 crore during the period under review.

On full year basis, the company reported a consolidated net profit of Rs 1077 crore in financial year ended 2022 as compared to a consolidated net loss of Rs 127 crore posted in financial year ended 2021. The company reported a 65% rise in net sales to Rs 10,461.07 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.

Commenting on the performance, B.N. Kalyani, chairman & MD of the company said, "The company ended the year on a strong note with topline growing by 28% to Rs 16,741 million driven by pickup in both domestic & export markets. EBITDA margins at 25.7% in Q4 FY22 were maintained as compared to Q4 FY21, despite cost inflationary pressures. PBT for the quarter at Rs 3,520 million was a growth of 40.3% as compared to Q4 FY21.

At a consolidated level, we expect FY23 to be a strong year characterized by topline growth coupled with strong cashflows, ramp up of the US aluminium operations, revenue contribution from the newer verticals and a further diversified revenue mix. For the standalone business, we expect continued growth in the key markets across all sectors. Easing of cost pressures & supply chain tightness will provide a fillip to the end demand across geographies."

Meanwhile, the company's board recommended a final dividend of Rs 5.50 per equity share for the financial year ended 31 March 2022.

Bharat Forge manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.

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