Bharat Forge, a leading automotive supplier has announced its financial results for Q2 FY2024. The company reported revenue of Rs 2,249.4 crore, up 21 percent YoY; EBITDA of Rs 616 crore as against Rs 553 crore a year ago, the net profit came at Rs 345.9 crore, up 29 percent YoY.
Baba N Kalyani, Chairman & MD, Bharat Forge said, “During the quarter, the company registered a strong performance across segments & geographies, with robust YoY growth of 20.7% in revenues and 29.3% in profitability. EBITDA margins at 27.4% expanded by 310 bps driven by operating leverage and a sharp focus on cost control. The strong financial performance and debt reduction of Rs 307 crore resulted in ROCE (net-of-cash) inching closer to the 20% mark. Passenger vehicles has been a standout sector for the company over the past few quarters and it continues to rise driven by market share gains, increasing value addition and order wins from newer geographies and customers. Today this sector account for almost 25% of our exports and will continue to be a key contributor to the growth of the group.”
He further mentioned that in H1 FY2024, the standalone business secured new orders worth Rs 740 crore across various segment including Rs 300 crore for e-mobility programs. The defence business too continues to strengthen in terms of execution and order wins. During the quarter, the company’s defence vertical, KSSL secured new business worth Rs 1,100 crore taking the executable order book to Rs 3,000 crore, over the next 24 months.
“Excluding the impact of seasonally weak quarter in the European market, the overseas operations performance has shown improvement consistent with the increase in capacity utilisation of the aluminium business. A sustained path to profitability for the overseas business is going to be driven by a combination of achieving profitability in the aluminium business and product/manufacturing optimisation in the steel business, all expected to materialize in the next 12 – 18 months.
Barring any untoward global disturbances which may impact demand sentiment, we expect the momentum in our businesses to continue in H2 FY24 performance along with strong cash flow generation,” concluded Kalyani.
