Bharat Forge gains 5% on healthy Q1 operational performance, growth outlook

Shares of auto components and equipment maker Bharat Forge climbed 5.45 per cent during intra-day deals following the company's earnings report for the first quarter of the fiscal year 2024-25.

In an exchange filing on the BSE, Bharat Forge stated that on a consolidated basis, the company's revenues grew by 5.9 per cent year-on-year (Y-o-Y) to Rs 4,106 crore in Q1FY25, from Rs 3,877.26 crore reported in the corresponding quarter of the previous fiscal year. Bharat Forge's consolidated Ebitda grew by 22.8 per cent Y-o-Y to Rs 760 crore in Q1FY25. The company attributed its strong operating performance to the steady execution of defense export orders and a recovery in the oil and gas business.

On a standalone basis, Bharat Forge's revenue from operations rose by 10 per cent year-on-year (Y-o-Y) to Rs 2,338 crore. Bharat Forge's profit after tax advanced 13.5 per cent year-on-year on a standalone basis to Rs 2,694 crore in Q1FY25 from Rs 3,114 crore reported in Q1FY24.
 

The group secured new orders worth Rs 980 crore across the defense, ferrous and aluminum castings, and core forging business segments. The group's defense business posted revenue of Rs 642 crore in Q1, registering a jump of 147 per cent Y-o-Y. With order wins of Rs 775 crore, the executable order book as of June 30 stood at Rs 5,400 crore, with a mix of artillery guns, vehicles, and consumables, according to the exchange filing.

"Looking ahead into Q2 FY25, we expect continued positive momentum in the Indian entities across Forging, castings & Defence and for the overseas operations, we reiterate our expectation that these businesses will see an improvement in operational parameters resulting in reduction of losses in FY25,” said B N Kalyani, Chairman & Managing Director, Bharat Forge.

Bharat Forge, a part of the Kalyani Group, is one of the leading forging companies in India. The company is global provider of high-performance, innovative, safety & critical components and solutions to various sectors including Automotive, Railways, Defence, Construction & Mining, Aerospace, Marine and Oil & Gas.

As of August 8, 2024, Bharat Forge commands a market cap of Rs 73,791.22 crore on the BSE. The company is a constituent of the BSE 100 index. Shares of Bharat Forge have yielded a return of 26.77 per cent year-to-date, according to BSE analytics. However, the company’s shares have fallen 7.91 per cent in the last one week and 5.58 per cent in the last one month, while they jumped 12.28 per cent in the last three months, 23.11 per cent in the last six months, and 74.71 per cent in the last one year.

Shares of Bharat Forge have multiplied investors' wealth over the last two years with a rally of 122.01 per cent, as per BSE analytics.

The company’s shares have a 52-week range of Rs 1,826.20 - 887.55 on the BSE.

At around 02:05 PM, shares of Bharat Forge were quoted trading at Rs 1,580.85, up 1.44 per cent from its previous close of Rs 1,558.45 on the BSE.