Bharat Forge net profit rises over 7% on strong automotive exports
Its consolidated revenue from operations during the period under review stood increased by 35 percent and stood at Rs 2,851.46 crore. In the first quarter last year, it was at Rs 2,107.68 crore.
Auto components maker Bharat Forge's consolidated net profit increased 7.03 percent and stood at Rs 160.37 crore for the April-June quarter as compared to Rs 152.7 in the corresponding period a year ago.
At 2.56 pm, shares of Bharat Forge were trading at Rs 726.6, an increase of 1.2 percent from the previous close on the BSE.
Its consolidated revenue from operations during the period under review stood increased by 35 percent and stood at Rs 2,851.46 crore. In the first quarter last year, it had stood at Rs 2,107.68 crore.
However, automotive export revenue grew, driven by both commercial and passenger vehicle segments, it said, adding in Europe, the geopolitical crisis impacted overall demand and supply chain. Exports added to 60 percent of the company's revenue.
"I think our exports are strong, they will remain strong. We have many new avenues where exports are increasing. Our traditional avenue with CV, with automotive, will continue to grow. And we have a lot of work that's that we are doing in the aluminium space. And that is largely in Europe as well as in the US and I think that will also start showing some pretty good growth," Baba Kalyani Chairman & MD Bharat Forge, told CNBC-TV18.
Bharat Forge’s total expenses in the first quarter grew to Rs 2,643.95 crore from Rs 1,874.24 in the corresponding period last year.
The company is also expecting growth in the electric vehicle sector as it already has strong demands and positive cash flow in the sector.
"Greenfield plans do take a little time to get to 100 percent capacity and I think towards the end of this year, we should be running at a reasonable level of capacity. So we will have positive cash flows coming out of that, and next year should see a pretty good growth," Kalyani added.
Due to the alignment of accounting periods of its subsidiaries, associates, and joint ventures, the company said that its consolidated results are not comparable to those of its previous fiscal year.
In line with the underlying market decline, the company's India automotive business saw its revenue decline sequentially due to a reduction in the production of medium and heavy commercial vehicles and passenger vehicles.
”Looking ahead into Q2 FY23, there are tremendous cost pressures, which are beginning to ease off right now. And, I think as the cost pressures ease off, the margins will improve. To give you an exact number is difficult but yeah, targeting 100 basis points wouldn't be very off the chart,” added Kalyani.
(Edited by : Nishtha Pandey)
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