Bharat Forge Ltd witnessed a robust 52 percent increase in its consolidated net profit for the September quarter, driven by contributions from all businesses.
Consolidated net profit for the quarter stood at Rs 2148.65 crore against Rs 1415.56 crore a year ago. Revenue soared 22.7 percent to Rs 3,774.19 crore, with a 21 percent increase in both export and domestic revenue. In Q2FY24, PV exports surged by 39 percent YoY, and domestic revenue grew 1.5X due to the defense business.
EBITDA margin reached 27.4 percent, a 330 bps YoY increase. Superior operational performance was driven by an improved product mix and higher capacity utilization, according to the company.
The company said a debt reduction of Rs 307 crore brought ROCE closer to 20 percent.
Passenger Vehicles is a strong sector, accounting for 25 percent of exports. In the first half of FY24, standalone business secured Rs 740 crores in new orders, including Rs 300 crores for E-Mobility. The defense business is thriving, with Rs 1,100 crores in new orders, and an executable order book of Rs 3,000 crores over the next 24 months, it added.
Excluding the seasonally weak European market, overseas operations improved due to increased aluminum capacity utilization. Profitability will come from aluminum and steel optimization in the next 12-18 months, barring global disruptions, it added. The company anticipates continued momentum and strong cash flow in the second half of FY24.
Its standalone operations reported a 29 percent year-on-year jump in net profit to Rs 346 crore while revenue advanced 20.7 percent to Rs 2,249.40 crore. EBITDA margin for standalone operations stood at 27.4 percent from 24.3 percent last year.
In India's Auto Business, the CV sector stayed positive with stable North American Class 8 metrics and steady European CV sales. Steady growth resulted from market share gains and expansion in CV. The PV business thrived with increased market share and broader reach, the company said.
In India's Industrials business, new products and client engagement boosted growth. Mining & Construction remained stable, and it pursued new markets. It focused on building relationships in sectors like Construction & Mining, Railways, Agri equipment, Aerospace, and more, according to the company.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
