Bharat Forge posts Rs 127 crore loss as pandemic takes a toll

By: |
August 13, 2020 2:30 AM

The company reported consolidated revenues of Rs 1,154.2 crore, down 50% y-o-y with the pandemic and lockdowns taking a toll on the company’s production and sales.

Both the automotive as well as industrial business segments were adversely impacted.Both the automotive as well as industrial business segments were adversely impacted.

Bharat Forge on Wednesday reported a loss of Rs 127.32 crore in the June quarter of FY21 compared with a profit of Rs 171.9 crore in the June quarter of the last fiscal.

The company reported consolidated revenues of Rs 1,154.2 crore, down 50% y-o-y with the pandemic and lockdowns taking a toll on the company’s production and sales.

Total income also halved to Rs 1,199.24 crore. Both the automotive as well as industrial business segments were adversely impacted.

Bharat Forge CMD BN Kalyani said the economic lockdown, coupled with lower underlying demand, had an adverse impact on sales.

The company had operations running for only one month during the quarter and was running at 20% capacity.

The company managed to reduce breakeven levels with cost reduction and improved productivity, Kalyani said.

“Looking ahead into demand for the coming quarter, we are witnessing marginal improvement in demand across both domestic and export markets. We expect our domestic revenues to be flat compared with Q2FY20, while the exports will be lower than levels witnessed in Q2FY20.

“The sustainability in the recovery in underlying demand is a key factor to track in the coming months,” Kalyani said.

The company said while customer demand was slowly improving, there was significant uncertainty around the pace of global recovery in the key markets that the company catered to.

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