Bharat Forge reports 34% YoY increase in net profit, posts 36% jump in revenue for Q1

9 Aug 2023 , 02:10 PM

Bharat Forge Limited has reported a 34% year-on-year surge in its consolidated net profit, amounting to Rs 213 crore, for the June quarter of the ongoing financial year. The company’s announcement was made through an exchange filing on August 9.

The manufacturer, renowned for producing critical and safety components across various sectors including automobiles, recorded a notable 36% increase in revenue, reaching Rs 2,851 crore. This is in comparison to its revenue of Rs 3,877 crore during the same quarter of the previous year.

Bharat Forge’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) demonstrated a rise of 50 basis points. The EBITDA soared by 41%, reaching Rs 617 crore, driven by increased capacity utilization.

Additionally, the company revealed that its board of directors has approved the conversion of existing intercorporate deposits provided by the company to Kalyani Powertrain Limited, its wholly-owned subsidiary. This conversion includes interest, totaling Rs 111.3 crore, into equity shares. The initiative aims to reduce the overall borrowings at KPTL. This disclosure was shared by Bharat Forge in a statement to the exchanges.

Following the earnings report, the share price of Bharat Forge surged by 2.62% to reach Rs 929.45as of 14.09 pm on the NSE.