Bharat Forge slipped 3.91% to Rs 451 after consolidated net profit fell 18.5% to Rs 206.9 crore on a 16.9% decline in total revenue to Rs 2,158.1 crore in Q2 September 2019 over Q2 September 2018.Bharat Forge witnessed sharp decline in growth in both the auto & industrial business across geographies.
EBIDTA stood at Rs 317.6 crore in Q2 September 2019, declining 23.4% from 414.8 crore in Q1 June 2019 and falling 43.4% from Rs 561.4 crore in Q2 September 2018.
EBIDTA margin stood at 14.7% in Q2 FY20 as against 17.8% in Q1 FY20 and 21.6% in Q2 FY19.
The firm's chairman & managing director, B.N. Kalyani, said, "The quarter gone by has been the toughest period witnessed by the company in this decade. The sluggish macroeconomic environment in India resulting in weak end demand across sectors coupled with automotive OEM's need to destock ahead of introduction of BS VI emission standards led to demand declining continuously through the quarter."
Looking ahead, given the prevailing environment in India and the slowdown in North America & Europe, we expect H2 FY20 to be lower than H1 FY20. Over the next 2-3 quarters, our focus will continue on strengthening the balance sheet, free cash generation, new product development and opportunistic inorganic growth avenues."
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
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