Bharat Forge CV growth moderates, exports shine

Bharat Forge Ltd. saw muted growth in its commercial vehicle (CV) business for fiscal year 2024 (FY24), mirroring a consolidation in India's medium and heavy commercial vehicle (MHCV) segment after two years of robust expansion, according to a regulatory filing. 

The company anticipates growth in line with the market, which is expected to pick up pace following India's upcoming elections and a potential rise in capex spending.

Bharat Forge's CV segment generated revenue of Rs 242.1 crore in Q4FY24, down from Rs 285.4 crore in Q4FY23. However, on a full-year basis, CV revenue reached Rs 1,034.1 crore in FY24, compared to Rs 1,014 crore in FY23.

The passenger vehicle (PV) segment displayed a similar trend. Q4FY24 revenue came in at Rs 78.6 crore, lower than Rs 81.7 crore in Q4FY23. The decline was more pronounced for the full year, with FY24 revenue at Rs 299.7 crore versus Rs 351.3 crore in FY23. Utility vehicles (UVs) account for over half of the company's total PV sales. 

Exports hold firm 

Bharat Forge highlighted the stability of its CV export business in FY24, with revenue rising 8.5% year-on-year. Order backlog, inventory levels, and cancellation rates remained manageable. Looking ahead, North American Class 8 truck production is forecast to remain flat with a slight downward bias in the calendar year 2024. While inflationary pressures in Europe have eased, a sustained recovery remains elusive, company management noted.

CV export revenue for Q4FY24 stood at Rs 526.4 crore, compared to Rs 511.9 crore in Q4FY23. Full-year FY24 revenue climbed to Rs 2,113.4 crore, up from Rs 1,947.4 crore in FY23.

PV exports, on the other hand, delivered a stellar performance, with revenue in FY24 surging 33% year-on-year to Rs 1,269.4 crore. Market share gains, geographic expansion, and increased value addition were cited as key drivers.