Bharat Forge has reported a decline of 3 percent in its profit at Rs 1,045 crore, despite an increase in revenue by 20.4 percent to Rs 7,572 crore for FY2023.
According to Baba N Kalyani, Chairman and MD, Bharat Forge, “FY2023 was a tough year for the overseas subsidiaries which recorded an EBITDA loss of Rs 96 crore due to challenges in the new aluminium forging facilities, coupled with cost under-recoveries which continue to impact profitability.”
In Q4 FY2023, the company reported standalone revenue from operations at Rs 1,997 crore, which was 19.3 percent higher YoY. This was the highest revenue for the company in a quarter with growth in sales across all business areas and regions. However, the standalone profit came at Rs 244.5 crore, a decline of 6.7 percent compared to same period last year.
During the year the company bagged new orders worth Rs 4,000 crore across defence, castings and standalone business. Kalyani says, the order wins provide strong visibility of revenue growth for the coming 2-3 years.
For FY2024, the company expects strong growth across revenues, profitability and return ratios, which will be driven by the core forging business and supported by all other businesses including e-mobility.
“We believe that many of the troubles ailing the overseas Aluminium business is behind us and expect them to contribute to improvement in Return Ratios for the consolidated entity. For the standalone business, FY2024 looks to be another good driven by growth in the end markets globally and ramp up of new orders won over the past 2-3 years,” said Kalyani.
