Bharat Forge on Thursday reported a net profit of Rs 337.3 crore for the quarter ended December, beating Street estimates. The quarterly net profit was up 264 percent on a year-on-year basis, according to a regulatory filing.
The forging company's revenue increased 54.7 percent on year to Rs 1,602 crore for the third quarter of the current financial year.
Analysts in a CNBC-TV18 poll had predicted the company's net profit at Rs 246 crore and revenue at Rs 1,537 crore.
The company, however, said there was a drop in export revenue due to the shortage of semiconductor chips. Persisting supply chain issues are creating a big hangover in export markets, it said.
Going forward, the firm expects both domestic and export markets to witness positive sales development.
The company reported Rs 407.7 crore in EBITDA (earnings before interest, taxes, depreciation, and amortisation), lower than the estimate of Rs 418 crore. The EBITDA increased 89.8 percent on a year-on-year basis.
Its quarterly EBITDA margin stood at 25.4 percent, as against the Street estimate of 27.2 percent. The margin had stood at 20.7 percent in the year-ago period.
Bharat Forge said demand remains robust in the last quarter of FY22. However, the agri equipment sector may remain under pressure.
Commenting on international operations, the company’s management said, even as demand is robust, inflationary costs will impact profitability. The firm is actively engaged with customers in the recovery of these cost increases, it added.
Bharat Forge’s financial results for the December quarter failed to impress investors. The stock was down 2.55 percent at Rs 728.9 on BSE at 2:20 pm.
First Published: Feb 10, 2022 2:31 PM IST
