Bharat Forge reports net profit of Rs 70 crore for Q2 FY2021, down 71%

by Autocar Pro News Desk , 11 Nov 2020

Bharat Forge, the country’s leading forging player has announced its financial results for Q2 FY2021, with revenue of Rs 912 crore (-30% YoY), compared to Rs 1,308 crore for the same period a year ago.

The company’s profit after tax for the quarter came at Rs 70 crore, compared to Rs 244 crore, which is 71 percent lower YoY.

Commenting on the result, Baba N Kalyani, chairman and MD said: “The standalone performance during the quarter was on expected lines with traction visible in domestic revenues while the exports revenues continue to witness YoY decline. The consolidated quarterly weak financials reflect the full impact of Covid-19 lockdown on our overseas manufacturing operations in Europe and North America during April-June period. Despite governmental assistance, they recorded an EBITDA loss of Rs 334 million. Our restructuring of both the Indian and International operations to enhance sustainability continues. We are focusing on incorporating more digital solutions in manufacturing and we also are making steady progress on further optimisation of our fixed cost.”

“Looking ahead to demand for the coming quarter, the outlook for domestic market is positive but is subject to continued momentum on the investment in infrastructure. On the export front, there are clear signs of demand improvement, especially in the commercial vehicle segment, but the second wave of Covid cases in Europe and North America and its potential impact on demand is something to keep track of,” concluded Kalyani.