Bharat Forge Q2 results: PAT surges 29% YoY to Rs 346 crore on strong overall show
Bharat Forge on Monday reported a 29% year-on-year (YoY) growth in net profit for the quarter ended September to Rs 346 crore, driven by a strong topline and operational performance.
Revenue from operations grew by nearly 21% to Rs 2,249 crore, driven by a 21% growth each in exports and domestic revenue. The quarter saw stellar performance on the exports front, with passenger vehicle (PV) exports growing 39% YoY.
Growth in domestic revenues was driven by a 1.5 times increase in the defence business, the company said.
Operating profit, calculated as earnings before interest, taxes, depreciation and amortization (EBITDA), increased by over 36% on year to Rs 616 crore.
Operating margin expanded a sharp 330 basis points on year to 27.4%, driven by an improved product mix and higher capacity utilization.
Following the earnings announcement, shares of the Baba Kalyani Group company extended the day’s gains and rose 4% to Rs 1,072.65.
India Business
In the automotive business, Bharat Forge saw the commercial vehicle segment registering a 12% YoY growth in the six months ended September, outperforming the overall market.
“The sector’s long-term trajectory is very promising, driven by the government’s focus on infrastructure spending and positive economic activity,” the auto ancillary maker said.
Further, the India PV business remains well-placed for growth driven by premiumization and the shift towards utility vehicles within the PV space.
“We expect this trend to continue supported by burgeoning middle class and higher disposable income,” the company said.
The industrial segment’s performance continued to be sanguine. Supply of components to KSSL drove the stellar YoY performance.
