Bharat Forge, one of the largest forging companies in India has announced its financial results for the first quarter of FY2023. The company reported revenue of Rs 1,759 crore, up 28.3 percent compared to the same period last year, the profit after tax came at Rs 243 crore versus Rs 166 crore respectively.
In terms of India business, the company says that during the first quarter of FY2023, there was a decline of in production of M&HCV and passenger vehicle segment, which led to decline in Bharat Forge’s revenue from the segment.
On the international stage, the passenger vehicle revenues saw a record high at Rs 194 crore, which is expected to continue for mid- to long-term.
Commenting on the results, Baba N Kalyani, Chairman and MD, Bharat Forge said, “The company’s performance in Q1 FY23 was steady with revenue and EBITDA witnessing growth on a sequential basis. Topline grew by 5.1% to Rs 17,594 million while EBITDA grew by 6.8% to Rs 4,600 million. Export revenues at Rs 10,475 million and PV export revenues at Rs 1,942 million are at an all-time high. We have completed the acquisition of JS Autocast, at an enterprise value of Rs 489.63 crore. This acquisition significantly enhances our capabilities to address segments in Industrial and energy sector in both domestic and exports markets and also opens up new products, we hitherto were not making. This will also enhance the AtmaNirbharta focus on the company in line with the vision of our Prime Minister.”
“During the quarter, the Indian operations secured new business worth Rs 350 crore across the automotive and industrial application. At a consolidated level, the European operations have delivered a stable performance as per plan, in-spite of high input prices and weak market conditions. The new Greenfield Aluminium Forging facility in North America is still in a ramp-up phase and operating at low utilisation levels which has adversely impacted the overall quarterly profitability. We expect this business to turnaround in second half of the fiscal. Looking ahead in to Q2 FY23, we expect stable performance across both the domestic and export markets despite uncertainty arising from the macro-economic headwinds caused by monetary tightening,” added Kalyani.