Peculiar situation of high Inflation and strong demand: Baba Kalyani
Bharat Forge on Thursday reported a net profit of Rs 337.3 crore for the quarter ended December, beating analyst estimates. Chairman and managing director, Baba Kalyani noted that it’s a peculiar situation of very high inflation and strong demand for the auto sector.
The auto sector is seeing a peculiar situation of very high inflation and strong demand, said Baba Kalyani, chairman and managing director of Bharat Forge, on Friday, adding that inflation in Europe is unprecedented and is now reaching North America.
Bharat Forge on Thursday reported a net profit of Rs 337.3 crore for the quarter ended December, beating analyst estimates. The quarterly net profit was up 264 percent on a year-on-year basis, according to a regulatory filing.
In an interview with CNBC-TV18, Kalyani said, “There is an unprecedented level of inflationary pressures, not only in Europe but now beginning to take place even in North America.”
“However, the good news, on the other side is that demand is at sky-high levels. Most companies in the automotive sector have demand booked out towards the end of 2024 and they have stopped taking new orders. So we have a very peculiar situation of very high inflation and therefore, one has to develop a completely new process of how to manage cost, the processes, customer relationships” he said.
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(Edited by : Abhishek Jha)
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