Bharat Forge, a leading forging firm based in Pune, has reported its Q1 financial results. Here are the key points from their announcement:
- Consolidated Net Profit: Bharat Forge reported a 34% year-on-year increase in consolidated net profit for the quarter ended June 2023 to Rs 213.73 crore. The company had posted a consolidated net profit of Rs 160.37 crore in the same quarter last fiscal.
- Consolidated Revenue: Consolidated revenue from operations was at Rs 3,877.27 crore, compared to Rs 2,851.46 crore in the year-ago period.
- Business Segments and Performance Highlights:
- Revenues in Q1FY24 grew by 21% YoY, driven by a 12.5% growth in exports and a 33.6% growth in domestic revenue.
- EBITDA margin at 26.0% in Q1 FY24 was relatively flat compared to Q1 FY23.
- The company’s EBITDA increased by 41% to Rs 617 crore, driven by capacity utilization.
- Conversion of Inter-corporate Deposits: The Company’s board approved the conversion of existing inter-corporate deposits given to Kalyani Powertrain Ltd (KPTL), a wholly-owned subsidiary. The conversion, along with interest amounting to Rs 111.3 crore, will be into equity shares to reduce overall borrowings at KPTL.
- Investment in KPTL: The board approved a further investment of up to Rs 150 crore in KPTL from time to time in one or more tranches.
- Outlook and Defense Segment:
- The management expressed optimism about the company’s performance and growth.
- Bharat Forge’s subsidiary KSSL started supplies of artillery systems as part of an export order won last year.
- In Q1 FY24, Bharat Forge won cumulative defence orders worth Rs 277 crore from multiple customers and product segments, to be executed over the next 18 months.
- Segment Performance:
- The automotive vertical in the Indian business remained resilient on a year-on-year basis.
- Passenger vehicles had a soft quarter due to lower off-take with OEM clients.
Bharat Forge’s Q1 performance reflects strong growth in both net profit and revenue, driven by robust performance in various segments including exports, domestic markets, and the defence sector. The company’s strategic decisions regarding inter-corporate deposits and investments are aligned with its efforts to strengthen its financial position.
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