Bharat Forge’s net profit for Q3FY2023 slipped 14.29 percent to Rs 289.18 crore from Rs 337.39 crore in the same quarter last fiscal. However, sequentially the PAT grew 8 percent as the Indian operations secured new business worth Rs 265 crores across automotive and industrial applications.
The topline – revenue from operation grew to Rs 1,952 crore up 21.85 percent from Rs 1,602.09 crore in Q3FY2022. Sequentially the revenue grew by 4.73 percent from Rs 1,863.93 crore in Q2FY2023.
The revenue growth was primarily driven by 9.4 percent growth in export sales. Domestic revenues declined by 1.7 percent due to lower PV production and seasonal weakness in tractors.
The company’s overseas operations posted an EBITDA loss of Rs 62 crore due to ramp up related issues of the new Al forgings capacities in Germany and USA.
Speaking about the company’s Q3 performance, Chairman and managing director, Baba Kalyani said, “They continue their journey towards profitability with focus on improving capacity utilization, cost optimization, price increases and cost compensation from customers. As we look ahead in to Q4 FY2023, we expect growth momentum to continue across both the domestic and export markets. Aiding the standalone performance, we expect the new verticals to start registering meaningful contribution at a consolidated level and EPS accretive in FY2024.”
Specifically on the highlights of the company’s automotive business, the MHCV production witnessed sequential growth while the passenger vehicles and LCV sector production declined by 10 percent & 14 percent respectively. BFL’s revenues from the PV segment declined in-line with industry volumes.
The automotive export revenues grew across commercial & passenger vehicle segments. Revenues from exports in the CV segment have grown by 5 percent while the PV segment revenues have grown by 10 percent sequentially. North America CV and PV volumes continue to show robust growth on the back of fleet replacement and strong demand for personal mobility. European automotive market continues to remain gloomy with the only silver lining being MHCV truck volumes which have recorded a YoY growth in 2022.
