Bharat Forge Q1 results: Net profit up 34% at Rs 213 crore

company has also announced that the board of directors have approved the conversion of existing intercorporate deposits given by the company to Kalyani Powertrain Limited, a wholly-owned subsidiary

Bharat Forge Limited on August 9 reported a 34 percent year-on-year increase in consolidated net profit at Rs 213 crore in the June quarter of the current financial year, the company said in an exchange filing on August 9.

The company, which makes an array of critical and safety components for several sectors including automobiles, posted a 36 percent jump in revenue at Rs 2,851 crore.  The company's revenue in the year-ago quarter was at Rs 3,877 crore.

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The jump in revenue was largely aided by robust growth in the export and domestic segment. As far as exports are concerned, the Americas remain the top customer, followed by Europe and Asia.

EBITDA or earnings before interest tax, depreciation, and amortization increased by 50 basis points. EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. Bharat Forge's EBITDA increased 41 percent to Rs 617 crore driven by capacity utilization.

In the Indian business, the automotive vertical remained resilient on a year-on-year basis as domestic demand continued to be in good shape. The outlook remains promising and the management is confident that the segment will morron industry growth in the coming quarters.

Passenger vehicles had a soft quarter due to lower off-take with our OEM clients. "We remain optimistic that BFL will continue to match industry growth."

Furthermore, The company's wholly-owned subsidiary KSSL has started supplies of artillery systems as part of the export order won last year. In Q1 FY24, Bharat Forge won cumulative orders worth Rs 277 crore in defence from multiple customers and product segments, and the company said these will be executed over the next 18 months. "The defence order book is increasing steadily", the management said in a press release on Wednesday.

The company has also announced that the board of directors have approved the conversion of existing intercorporate deposits given by the company to Kalyani Powertrain Limited, a wholly-owned subsidiary of the Company, along with interest thereon, amounting to Rs 111.3 crore into equity shares, to reduce the overall borrowings at KPTL, Bharat Forge said in a disclosure to the exchanges.

At 2:02 om, the stock was trading at Rs 943, trading 4.2 percent higher from the previous day's close on the National Stock Exchange. The volumes were also positive as 40 lakh shares changed hands as against the one month average of 11 lakh shares.

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