Bharat Forge (BFL) reported a 13.22% year-on-year rise in consolidated net profit to Rs 361.12 crore and a 2.27% y-o-y reduction in consolidated revenue to Rs 3,688.50 for the September quarter. EBITDA for the quarter was up 10.8% to Rs 690 crore, resulting in margin improvement by 220 basis points to 16.5% driven by improvement in capacity utilization and product mix in India. The company has announced plans to invest R 1,112 crore in three subsidiaries including the e-mobility arm.
B N Kalyani, chairman and managing director, BFL said the revenue de-growth was driven by weakness in the European automotive markets.
“The sluggish economic condition in Europe and its impact on the automotive industry is delaying the recovery in the overseas business,” Kalyani said.
The group secured new orders worth Rs 1,207 crore across defence, castings (ferrous and aluminum), and the core forging business. Kalyani said that around two-thirds of the order wins for H1FY25 of Rs 2,216 crore had come from the defence segment and one-third from the component business. “BFL group’s defence business posted revenue of Rs 509 crore in Q2, a jump of 67% y-o-y. With order wins of Rs 642 crore in Q2, the executable order book as of September 30 stands at Rs 5,905 crore,” he said. Kalyani expected H2FY25 performance to be stable compared to the first half of FY25.
The company has received board approval to invest Rs 1,122 crore in three subsidiaries: Bharat Forge Global Holding GmbH (Rs 369.5 crore), Bharat Forge America (Rs 544.7 crore), and Kalyani Powertrain (Rs 207.5 crore).
BFL’s operating profit increased by 18.9% year over year due to improved performance at Kalyani Strategic Systems (defence arm) and a halving of losses in the e-mobility business, Kalyani Powertrain.
