Bharat Forge Q2 Profit Falls on Exceptional Items; Revenue Up 9.6%

8 Aug 2024 , 03:49 PM

Bharat Forge today reported a 13.5% on year decline in standalone net profit for the April-June quarter to ₹269.4 crore, mainly due to an exceptional loss of ₹145.6 crore. The company’s total income grew 9.6% on year to ₹2,382.7 crore.

EBITDA margin expanded 210 basis points on year to 28.1% due to pick up in defence and growth in oil and gas operations, the company said.

The exceptional loss was primarily due to the impairment cost of Kalyani Powertrain Limited, a step-down subsidiary of the company.

The group secured new orders worth ₹980 crore across defence, ferrous and aluminium castings, and the core forging business. The defence business of the group had executable order book stood at ₹5,400 crore as of June 30.

The company expects continued positive momentum in its Indian entities across forging, castings, and defence, as well as for its overseas operations in the second quarter. “We reiterate our expectation that these businesses will see an improvement in operational parameters resulting in the reduction of losses in FY25,” the company stated.

Additionally, the company’s board approved raising ₹2,000 crore through equity shares or debt issuance.

Shares of Bharat Forge rose after the announcement of the results and were up 3.2% at ₹1,607 at 1453 IST.