The company's profits were lower due to an expense of Rs 616.47 crore for Voluntary Retirement Scheme offered to 200 employees at its Chakan plant in June 2021.
Bharat Forge reported a consolidated net profit of Rs 153.65 crore for the June quarter compared to the loss of Rs 125.81 crore it posted in the June quarter of the previous fiscal. Consolidated revenues grew 82% year-on-year (y-o-y) to Rs 2,107.68.8 crore on the back of growth in exports. The company’s exports grew by 25.3% to Rs 915.6 crore.
The company’s profits were lower due to an expense of Rs 616.47 crore for Voluntary Retirement Scheme offered to 200 employees at its Chakan plant in June 2021. B N Kalyani, chairman and managing director, Bharat Forge, said the company managed to deliver a solid performance across the board during the quarter despite challenges posed by the Covid lockdown and subsequent impact on economic activity in India.
Despite significant across the board input cost pressures, Ebitda margins have expanded 300 basis points (bps) on back of favourable product mix, Kalyani said. During the quarter, the company completed the acquisition of Sanghvi Forgings at a cost of Rs 77.06 crore. This company is into manufacture of heavy forging for industrial applications.
Kalyani expects overall growth to continue in Q2FY22, supported by recovery in the domestic MHCV market and sustained improvement in demand levels in the export market. The company is keeping a watch on semiconductor supply issues and increase of input costs in the coming months.