Bharat Forge on Thursday said its consolidated net profit rose by 5% to 160.37 crore for the June quarter, while revenue from operations was up 35.28% to2,851.46 crore.
The company’s standalone net profit rose 46% to 243.65 and revenue from operations grew by 28.3% to1,759.39 crore on a standalone basis. The Ebitda margin fell to 24.71% during the quarter against 28.5% for the same period a year ago.
Chairman and managing director BN Kalyani said the company’s performance in Q1FY23 was steady with revenue and Ebitda witnessing growth on a sequential basis. Total export revenues at 1,047.5 core and PV export revenues at194.2 crore were at an all-time high, he said.
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“At a consolidated level, the European operations have delivered a stable performance as per plan, in spite of high input prices and weak market conditions,” the CMD said.
The new greenfield aluminium forging facility in North America is still in the ramp-up phase and operating at low utilisation levels, which has adversely impacted the overall quarterly profitability, the company said. Kalyani expects this business to turn around in the second half of the fiscal and lead to an overall margin improvement.
Kalyani said he is expecting a stable performance in Q2FY23 across both the domestic and export markets despite uncertainty arising from the macroeconomic headwinds caused by monetary tightening.
The company said the aerospace business is growing and contributing 10% to the industrial business. The firm added two new customers in this space, providing solid visibility for long-term growth.
During the quarter, Bharat Forge completed the acquisition of JS Autocast which the company said enhanced capabilities in the industrial and energy segments in both domestic and export markets.
