Bharat Forge shares soared over 15 percent to hit a fresh 52-week high of Rs 1,474.4 on May 8 after the company reported a 59.3 percent year-on-year rise in net profit for Q4FY24 at Rs 389.6 crore. The stock closed at Rs 1,438 on NSE. The positive management commentary regarding future profitability also seemed to have boosted the stock price. The stock closed at Rs 1,438.
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"At a consolidated level, we expect FY25 to be a year of growth driven by defence business, industrial casting business and continued improvement in capacity utilisation of the overseas business. The turnaround of the overseas business coupled with margin improvement in other business verticals should result in strong growth in profitability in FY25,” Bharat Forge Chairman and Managing Director Baba Kalyani said in a statement.
The defence business was a major contributor to the company's strong fiscal fourth quarter results as well. "A key driver of the strong performance was the fulfilment of defence export orders won by KSSL (Kalyani Strategic Systems Limited) and the continued strong ramp-up of exports business across all business segments except Oil & Gas," the company said in an exchange filing.
In FY24, the company said that it secured new orders worth Rs 1,350 crore across automotive & industrial applications.
In a conversation with CNBC-TV18, Kalyani said that they are looking at a 50-60 percent growth for FY2025. Over the last three months, the Kalyani said that the company has received over $500 million in defense contracts.
In Q3FY23, Bharat Forge reported a net profit of Rs 244.5 crore. Total revenue of Bharat Forge jumped 16.6 percent in Q4 to Rs 2,328.5 crore from Rs 1,997.3 crore last year. EBITDA (earnings before interest, taxes, depreciation and amortisation) for Q4FY24 is Rs 659 crore as against Rs 522.8 crore in the previous fiscal.
Over the last one year, stocks of Bharat Forge gained over 57 percent.
Also read: Bharat Forge net profit surges 59.3%, revenue gains 16% in Q4
Pune-based Bharat Forge provides components and solutions to various sectors, including automotive, railways, defence, construction and mining, aerospace, marine and oil and gas.
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