Bharat Forge bags Rs 850 crore worth new orders during Q2FY23
The company's net profit slipped 48 percent to Rs 141 crore during Q2FY23 on account of negative performance of its European operations
Bharat Forge, a tier 1 supplier to automotive and other industries reported that it has secured Rs 850 crore of new businesses across automotive and industrial applications during the July to September quarter, the company informed the investors in a regulatory filing.
B.N. Kalyani, Chairman & Managing Director stated that the new order comes on back of market share gains in the passenger vehicle business and new product introduction in the industrial space.
Pune-based Bharat Forge claims to be the largest exporter of auto components from India and one of the leading chassis components manufacturers in the world. It offers components spread across different segments such as crankshaft, connecting rod, emission/after treatment, and fuel injection systems.
Meanwhile, the company reported a slide in its consolidated net profit by 48 percent to Rs 141 crore during Q2FY23 pulled down by its European operation. The company posted a net profit of Rs 270 crore in Q2FY22.
The operating revenue increased to Rs 3076 crore in the reviewed period from Rs 2,386 crore in the September quarter of last year.
Reviewing the Q2 earnings, Kalyani said, "The company registered a stable performance in Q2 FY23 with a 5.9 percent sequential growth in revenues and 10.1% sequential growth in profit after tax (PAT). During the quarter, we recorded our highest exports revenues at Rs 1,066.4 crore," Kalyani added.
The key factor that has negatively impacted the performance of the European operations is that the aluminum forging business has seen lower than expected sales volumes.
Kalyani, remarked that the new greenfield aluminum forging factory in North America is still in the ramp-up phase and working at below EBIDTA break-even levels and he is confident it would turn positive in the second half of this fiscal year.
Over the next two quarters, Kalyani forecasted that the performance of European aluminum operations will also gradually improve.
On the way ahead, the company anticipates solid performance in both the domestic and international markets.
Further, the company added that in the first quarter post its acquisition, JS Autocast Foundry has secured new orders worth Rs 100 Crore, with new customer additions and high value-added product development being some of the key highlights. The synergistic benefits will play out fully over the coming 12-18 months.
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