Bharat Forge Reports Strong Q2 FY24 Results, Net Profit Jumps 29%

7 Nov 2023 , 01:58 PM

Bharat Forge’s share price increased by 4% after the company reported robust September quarter results. The company’s shares jumped as much as 4% to reach Rs 1,071.85 apiece on the BSE.

Bharat Forge recorded a 29% year-on-year increase in its standalone net profit, reaching Rs 345.9 crore for the second quarter of FY24, compared to Rs 268.1 crore in the same quarter of the previous fiscal year. The automotive forging company reported standalone revenue of Rs 2,249.4 crore in Q2FY24, reflecting a growth of 20.7% from Rs 1,863.9 crore in the year-ago quarter.

The passenger vehicles sector has been a standout performer for the company, contributing to almost 25% of its exports and driving growth, according to BN Kalyani, Chairman & Managing Director of Bharat Forge. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter increased by 34% to Rs 606.8 crore, while EBITDA margin improved to 27% from 24.3% year-on-year, driven by operating leverage and cost control.

Bharat Forge’s defense vertical, KSSL, secured new business worth Rs 1,100 crore during the quarter, increasing the executable order book to Rs 3,000 crore over the next 24 months.

The company expects the overseas business to achieve profitability in the next 12-18 months, driven by a combination of profitability in the aluminum business and product/manufacturing optimization in the steel business.

The company anticipates continued momentum in its businesses in H2 FY24 and strong cash flow generation, barring any global disturbances affecting demand sentiment.

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