Bharat Forge net profit rises by 52% with push from auto sector
The company's revenues increased by 22.68 percent to Rs 3,774.2 crore during Q2 FY24.
Pune-based Bharat Forge reported a consolidated net profit of Rs 214.87 crore during Q2 FY24, translating into a jump of 51.78 percent as against Rs 141.56 crore registered during a similar period last year on the back of a strong performance from automotive and other sectors.
The company's revenues, on the other hand, increased by 22.68 percent to Rs 3,774.2 crore during Q2 FY24, in compared to Rs 3,076.4 crore in the previous year.
In H1 FY24, the standalone business secured new orders worth Rs 740 crore across various segments, including Rs 300 crore for E-Mobility programmes
Passenger Vehicles has been a standout sector for the company over the past few quarters and it continues to rise, driven by market share gains, increasing value addition and order wins from newer geographies and customers. Today this sector account for almost 25% of our exports and will continue to be a key contributor to the growth of the group.
In the Indian automotive segment, the company's CV business registered a 12 percent YoY growth in H1FY24 outperformed the overall market. The sector’s long-term trajectory is very promising, driven by the government’s focus on Infrastructure spending and positive economic activity, the company said in its investor presentation. Furthermore, the company added that the India PV business remains well-placed for growth driven by premiumisation and the shift towards utility vehicles within the PV space. "We expect this trend to continue, supported by burgeoning middle class and higher disposable income," the company management said.
In terms of the company's global automotive business, the CV segment continued to be marginally positive. North American Class 8 build rates, inventory levels, and sales remain steady. European CV sales remained stable as economic activity continued to recover gradually. "Our CV business continue to generate steady growth supported by market share gains and addition of new geographies. The PV business continued with its strong growth driven by improvement in market share and enhancement of our geographical reach. We continue with our efforts to tap new customers and enhance engagement with the existing ones in multiple geographies,' the company stated in a market notification.
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