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Last Updated : Feb 13, 2019 01:12 PM IST | Source: Moneycontrol.com

Bharat Forge Q3 profit jumps 36% to Rs 310 cr, operating income rises 26%

The company secured new orders worth $6.5 million from the commercial vehicle and industrial sector.

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Auto ancillary and defence company Bharat Forge has reported healthy 35.9 percent on year growth in third quarter profit, driven by healthy truck orders and operating income. Other income and forex gains also boosted profitability.

Profit for the quarter increased to Rs 309.8 crore from Rs 228 crore in same period last year.

Revenue from operations during the quarter jumped 21.7 percent to Rs 1,692.5 crore on the back of strong performance across key verticals and all geographies.

"Key highlights during the quarter include record quarterly revenues from oil & gas vertical and the aerospace & defence vertical," Baba N Kalyani, Chairman and Managing Director said.

The company secured new orders worth $6.5 million from the commercial vehicle and industrial sector.

Kalyani said looking ahead into the next quarter, the company expects to see demand sustaining at current levels. "The domestic commercial vehicle sector is witnessing some softness in demand because of de-stocking and we expect it to become normal in the next few months."

Domestic revenue in Q3FY19 grew by 17 percent YoY to Rs 673.9 crore and exports increased by 25 percent to Rs 975.5 crore.

CY2018 was a strong year for the North American Class 8 market, the company said, adding CY2019 outlook for the same market looks positive supported by a high backlog of 3 lakh units coupled with high freight demand, but orders are expected to remain muted and reach normalised levels over the next couple of months.

Revenues from industrial business in Q3 at Rs 462.8 crore increased by 35 percent YoY.

At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 26.3 percent year-on-year to Rs 525.8 crore and margin expanded 120 bps to 31.1 percent in Q3.

Numbers were ahead of estimates on all parameters for the quarter. A CNBC-TV18 poll estimates for profit were at Rs 264 crore on revenue Rs 1,677 crore. EBITDA was estimated at Rs 485 crore and margin at 28.9 percent.

Bharat Forge's other income in Q3 more than doubled to Rs 47.8 crore compared to Rs 21.9 crore in same period last year. Forex gain for the quarter stood at Rs 38.9 crore, increased sharply from Rs 4.8 crore in corresponding quarter previous fiscal.

At 12:45 hours IST, the stock was quoting at Rs 493.00, up Rs 9.00, or 1.86 percent on the BSE.
First Published on Feb 13, 2019 01:12 pm
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