Bharat Forge’s Q3FY24 net profit has come in strong at Rs 377.8 crore, up 31% YoY from Rs 289.1 crore in Q3FY24. The revenue for Q3 too is higher at Rs 2263.3 crore, up16% YoY from Rs 1952.1 crore in Q3FY23 supported by favourable product mix and focus on cost optimisation.
During the quarter, the company clocked sales growth of 15.9% to Rs 2,263 crores and EBITDA growing by 30.9% to Rs 645 crores. EBITDA margins came in at 28.5%, expanding by 330 bps driven by diversified product mix. According to the company, a key driver of this growth has been the successful ramp-up of the defence business, in addition to the growth in the core forging business.
According to Chairman & Managing Director, Baba Kalyani, “During the quarter, the company has secured new business worth Rs 550 crores across automotive, industrial, defence, aerospace and castings (Ferrous & Aluminum). In the overseas operations, we have been able to achieve improvement in operational parameters at the aluminium business in Europe and the same is expected in the US plant soon. We continue to work on creating a sustained path to profitability for the overseas business driven by a combination of achieving profitability in the aluminum business and product/manufacturing optimization in the steel business, all expected to materialize in the next 12 – 18 months.”
He was however cautious about the growth momentum going forward and added that, “Looking ahead in the Q4 and further into FY25, we expect the growth momentum to moderate in both Domestic and Export markets across industries. Our endeavor will be to outperform the market driven by our diversified business mix.”
