Bharat Forge will strive to become an artillery house on a global basis on our strategies and idea that we develop IP and products ourselves, said Chairman and Managing Director, Baba Kalyani.
In an exclusive interview with CNBC-TV18 on August 11, Kalyani spoke about the company's defence vertical, its revenue forecast for the fiscal year, capex plans and more.
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Speaking of the defence vertical, CMD Kalyani said that 80 percent of the business is exports and that the company is seeing huge demand from different countries for their defence products. "We are getting so much business because all these products are designed and developed by us. We are not dependent on anyone, there's no tie up or joint venture. This is our strategy for the last 10 years."
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On the domestic side of the business, Kalyani added that there is a huge pipeline of products. "We are very confident that our defense vertical will show stellar results every quarter."
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.
Additionally, on the quantum of the domestic orders and timeline, he said that discussions are going on for 307 artillery guns and mounted guns and rough timeline would be another year for getting the order worth anywhere between Rs 5,000 crore.
"(We) expect orders for artillery guns from December, and mounted guns after another quarter," he said.
Moreover, giving a revenue forecast from the defence vertical for the current financial year (2023-2024), Kalyani added that the company is are targetting Rs 12,000 crore, out of which Rs 900 crore will be from exports and remaining from domestic. "Next year, we wish to double this number," he added.
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He also said that the Indian government, Ministry of Defense, External affairs ministry have always been helpful.
He further said that the company will spend roughly around Rs 1000 crores on capex.
Meanwhile, shares of the defence firm were trading 2.65 percent higher at Rs 976.50 apiece on BSE even as Sensex was down 300 points and Nifty neared 19,450 at 1:15 pm.
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