Bharat Forge reported that its net profit increased to Rs 421 crore during Q3FY2022 as against Rs 209 crore during the year-earlier period. The company's consolidated revenues for the quarter under review was Rs 2,395 crore as against Rs 1,723 crore during the comparable period, recording 39 percent growth, the company informed in a regulatory filing.
According to B N Kalyani, CMD, Bharat Forge, the Q3FY2022 performance was on expected lines with total sales remaining flat in comparison to the previous quarter with exports revenues declining by around 10 percent while domestic revenues grew by 16.5 percent. He added that the drop in export revenues were primarily on account of curtailment of production of Class 8 trucks due to semiconductor chip shortage.
For the nine-month period, in FY22, the Indian operations has secured new orders worth around $ 100 million including around $ 50 million for EV platforms across export and domestic customers, the company added.
The outlook for Q4 FY22 for the standalone operations, the CMD said would be robust demand, with supply chain issues persisting and which would creating a big hangover especially in the export markets. "We expect both the domestic and export markets to witness positive sales development across all major sectors barring the agri- equipment sector in India,” he added.
Kalyani further added that for the international operations, while demand remains robust, severe and unprecedented inflationary cost pressures across all variable cost elements including raw materials, logistics and energy are expected to take a toll on the profitability of his companies in Europe in the initial quarters of CY2022.