Bullish on CV demand; EV, a work in progress: Baba Kalyani
Bharat Forge's Q3FY21 earnings came in operationally better than estimates, but bottomline was hit by a one-time loss. The Auto components major reported a consolidated net loss of Rs 210.45 crore in the third quarter ended December 31, 2020. The company had posted a consolidated net profit of Rs 40.44 crore in the same quarter last fiscal, Bharat Forge said in a regulatory filing. Baba Kalyani, CMD of Bharat Forge discussed the numbers.
Bharat Forge's Q3FY21 earnings came in operationally better than estimates, but bottomline was hit by a one-time loss. The Auto components major reported a consolidated net loss of Rs 210.45 crore in the third quarter ended December 31, 2020. The company had posted a consolidated net profit of Rs 40.44 crore in the same quarter last fiscal, Bharat Forge said in a regulatory filing.
Baba Kalyani, CMD of Bharat Forge discussed the numbers.
“We began to see fairly strong demand in commercial vehicle (CV) space across all the geographies that we operate in. therefore we are very bullish that this will continue and it will register strong growth for us on a sequential basis going forward,” he said.
In terms of production-linked incentive (PLI) scheme, he said, “I personally welcome the PLI scheme for auto components. It is a very good initiative that the government has taken, which will kickstart a larger amount of investments in the manufacturing sector to create growth opportunities. We are waiting for the details on the PLI scheme.”
“The contribution from the oil and gas business has been rather minimum. The RODTEP scheme needs to be put into place because it impacts all exporters. We are hoping that for our sector it will be announced sooner than later,” he said.
The company has been working on the electric vehicle (EV) space for the last two years. “We have been working in this space for some time. We are also working on what components we will produce in India. But that is a lot of work in progress. As and when the opportunities come, we will be ready,” he mentioned.
FY22 compared to FY21 will be substantially better, he said.
“FY18-19 was probably the best year for the CV industry worldwide,” he added.
On capacity expansion, Kalyani said, “We are currently running at 75 percent capacity utilisation. We have been able to enhance our capacity by productivity improvement and digital manufacturing in this COVID period. We are pretty good there, we don’t need to spend capital on creating capacities and increase our output.”
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(Edited by : Abhishek Jha)
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