Bharat Forge jumps after Q4 PAT rises 59% YoY to Rs 390 cr

Bharat Forge (BFL) rallied 7.23% to Rs 1,343 after the company's standalone net profit jumped 59.23% to Rs 389.65 crore in the quarter ended 31 March 2024 as compared with Rs 244.52 crore recorded in the quarter ended 31 March 2023.

Revenue from operations increased 16.59% to Rs 2328.58 crore in Q4 FY24, driven by execution on defence export order and Passenger vehicle exports.

Profit before tax climbed 62.58% YoY to Rs 512.71 crore in Q4 FY24.

During the quarter, EBITDA stood at Rs 654.1 crore as compared with Rs 522.8 crore posted in corresponding quarter last year, registering the growth of 12.55%.

EBITDA margin at 28.1% in Q4 FY24 represents a 190 bps improvement YoY driven by improved product mix. For FY24, EBITDA margins have expanded by 200 bps to 27.5%.

On full year basis, the companys standalone net profit jumped 36.3% YoY to Rs 1424.95. Revenue from operations.

B.N. Kalyani, chairman & MD, said, The company ended the year on a strong note with topline growing by 16.6% to Rs 2,329 crore while EBITDA grew by 25.1% to Rs 654 crore resulting in EBITDA margins of 28.1% in Q4 FY24. For the full year, topline grew by 18.4% to Rs 8,969 crore and EBITDA grew by 28.0% to Rs 2,469 crore. A key driver of the strong performance was the fulfilment of defence export orders won by KSSL and the continued strong ramp-up of exports business across all business segments except Oil & Gas. The balance sheet continues to remain robust, with cash (Net of LTL) of Rs 815 crore and sharp improvement in all key parameters. At a consolidated level, topline grew by 21.5% to Rs 15,682 crore and EBITDA grew by 44.4% to Rs 2,566 crore.

In FY24, the Indian operations have secured new orders worth Rs 1,350 crore across automotive & industrial applications. This includes a healthy mix of existing and new customers across traditional & new products.

In FY24, the Indian operations have secured new orders worth Rs 1,350 crore across automotive & industrial applications. This includes a healthy mix of existing and new customers across traditional & new products.

BFL groups defence business recorded revenues of Rs 1,561 crore, a near 4X jump as compared to FY23. The company secured new orders worth Rs 4,494 crore across Artillery systems, Armored vehicles and consumables. The executable order book stands at Rs 5,192 crore as of March 31, 2024.

In FY24, the industrial casting vertical recorded a strong performance with topline growing by 28%, EBITDA growth of 57% and PBT doubling compared to FY23. The company has secured new orders worth Rs 460 crore in FY 24. Over the past 2 years, the business has made tremendous progress in reducing its customer and sector concentration and has developed a more balanced business mix across Automotive, Construction & Mining, Hydraulics & Wind energy.

We have set up a AI/Digital manufacturing center which will catalyze the engineering/ manufacturing activities and enable improvement in productivity and shorten time to market products. At a consolidated level, we expect FY25 to be a year of growth driven by Defence business, Industrial casting business and continued improvement in capacity utilization of the overseas business. The turnaround of the overseas business coupled with margin improvement in other business verticals should result in strong growth in profitability in FY25.

Meanwhile, the companys board has declared a final dividend of Rs 6.50 per equity share for FY24. It will be paid on or after 14 August 2024.

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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