 "Bharat Forge")
Pune-based Bharat Forge, one of the leading forging manufacturers in India, on Monday reported a 222 per cent surge in year on year (Y-o-Y) profit after tax during the third quarter of the current financial year (FY24) to Rs 254.4 crore, riding on a 15.2 per cent rise in consolidated revenues to Rs 3,866 crore.
Sequentially, the revenues grew by 2.4 per cent and profit after tax grew by 18.6 per cent.
The company’s stock slid 14.04 per cent on the BSE on Monday, ending the day’s trade at Rs 1,130.3 apiece. This was attributed to the management’s revision of the growth outlook for both Q4 and the entire FY25.
Speaking to television channels, Amit Kalyani, deputy MD, Bharat Forge said that their export markets in Europe were facing cost pressures and other geopolitical challenges.
“We will continue to grow as a company as we have many growth drivers. This year, we were growing at 20 per cent. Don’t think that is sustainable. Marine, rail, agriculture, mining are sectors that are under pressure abroad,” he told CNBC-TV18, adding that sectors driven by China will see pressure.
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The company, however, felt that it would have market share gains. The exports from Indian manufacturing operations across components defence and Industrial in Q3 FY24 stand at $200 million, a growth of 36 per cent over Q3FY23.
Speaking on their defence order book, Kalyani said, “Currently order book is mainly exports, and it is around Rs 2,000 crore. We have several new programmes which are going to be unveiled, which would add to our defence business. There are several other programmes where we are in the final stages of development or finalising a partner. Defence is now on its way to become a strong business and continues to drive growth both in India and abroad.”
During the quarter, the company has secured new business worth Rs 550 crores across Automotive, Industrial, Defence, Aerospace and Castings (Ferrous & Aluminum).
“In the overseas operations, we have been able to achieve improvement in operational parameters at the Aluminum business in Europe and the same is expected in the US plant soon. We continue to work on creating a sustained path to profitability for the overseas business driven by a combination of achieving profitability in the aluminum business and product/manufacturing optimisation in the steel business, all expected to materialise in the next 12–18 months,” the company said.
Bharat Forge has repaid Rs 500 crore debt year-to-date.
