Pune-based Bharat Forge reported an 18.34% drop in net profit at Rs 174.57 crore for the quarter ending June 2024 as against Rs 213.73 crore during similar period the previous year. Meanwhile, the consolidated revenue grew by 5.9% to Rs 4,106 crore.
The company in its investor presentation stated that in its automotive division, the CV business remained soft YoY as domestic demand remained tepid due to elections. The long term outlook for the sector remains promising driven by the government focus on expanding the road network and higher public capex. Bharat Forge’s growth in this sector will be driven by a combination of underlying market growth coupled with growth driven by content increase.
In terms of exports, the CV business continued to remain steady. Inventory levels in the supply chain remain reasonable while sales momentum is sustained. European CV sales remain muted as recovery remains anemic. For the full year, CV exports are likely to be stable with a moderately negative bias, the company added.
Meanwhile, the domestic passenger vehicle recouped slightly on a year on year basis. "As we attempt to forge newer partnerships we hope to benefit from the long term structural market growth and premiumisation of the sector," the company said. Furthermore, the PV export business remains on course to consolidate its gains over the last three years. "We continue to focus on increasing our market share and increase our content per vehicle" the company presentation noted.