Bharat Forge's electric vehicle business will become as huge as its overall automobile business by fiscal year 2025, company's Chairman and Managing Director Baba Kalyani said on May 16.
Kalyani, while speaking to CNBC TV18, said Bharat Forge is "setting up a greenfield facility in the US for aluminum components for EVs".
The switchover to electric vehicle business will depend on "how fast the EV transition takes place".
"In the next four years, by FY2025, our EV component and electric vehicle business be as big as our overall auto business," he told the news channel.
Kalyani's remarks came shortly after Bharat Forge released the Q4 FY22 results, showing a nine percent surge in net profit to Rs 231 crore. Revenue from operations during the quarter stood at Rs 3,573.09 crore, as compared to Rs 2,082.85 crore in the corresponding period of the previous fiscal.
According to the Bharat Forge CMD, raw material prices are "not a problem" for the company as they look into the future.
"Raw material prices are a complete pass through. So, that is not a issue. We are beginning to see some levelling up of raw material prices," Kalyani said.
"If you look at the US and European market, demand is way above what the current production levels are. Production levels are largely constrained by the supply chain problems," he further stated.
On chip shortage, Kalyani said the overall condition is improving. "But supply chain issue still exists in Europe due to the Russia-Ukraine conflict,"the CMD, however, added.
Kalyani also noted that inflationary factors "will continue for some time" due to the crisis underway in Europe.
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