Pune-based Bharat Forge reported a net profit of Rs 174.57 crore for the quarter ending June 2024, down 18.34% from Rs 213.73 crore in the same period last year. However, the company’s consolidated revenue grew by 5.9% to Rs 4,106 crore.
In its investor presentation, Bharat Forge noted that its automotive division’s commercial vehicle (CV) business remained soft year-on-year, affected by tepid domestic demand due to elections. Despite this, the long-term outlook is positive, driven by government focus on expanding the road network and increased public spending. The company expects growth from both market expansion and increased content per vehicle.
Export-wise, the CV business stayed steady, with reasonable inventory levels and sustained sales momentum. European CV sales remained weak with a slow recovery. For the full year, Bharat Forge expects CV exports to remain stable with a slightly negative bias.
Domestically, the passenger vehicle (PV) segment showed slight improvement year-on-year. The company aims to benefit from long-term market growth and sector premiumization through new partnerships. The PV export business is set to build on its gains from the past three years, focusing on increasing market share and content per vehicle.
B.N. Kalyani, Chairman and Managing Director, stated, “Looking ahead into Q2 FY25, we expect continued positive momentum in our Indian entities across Forging, castings, and Defence. For our overseas operations, we anticipate improved operational parameters, leading to reduced losses in FY25.”
The Bharat Forge board has approved raising Rs 2,000 crore, potentially through equity shares, debt issues, or convertible securities. The final decision will be made by the strategic business investment committee. The company secured new orders worth Rs 980 crore across Defence, Ferrous and Aluminum castings, and core forging business.
