Bharat Forge’s Q2FY24 Quarter Results
Bharat Forge’s revenues grew over 22% YoY
- 09 Nov 2023
- Bharat Forge reported 2.9% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended September (Q2FY24). On a year-on-year (YoY) basis, it witnessed a growth of 22.6%.
- Its expenses for the quarter were down by 3.2% QoQ and up by 20.9% YoY.
- The net profit grew 0.5% QoQ and 51.8% YoY.
- The earnings per share (EPS) of Bharat Forge stood at 4.9 during Q2FY24.
Bharat Forge’s Financial Statements for Q2FY24:
Profit before tax
Profit after tax
Earnings per share
| (in Rs, crores) mobile_header | Q2FY23 | Q1FY24 | Q2FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total income | 3,122 | 3,941 | 3,827 | -2.9% | 22.6% |
Total expenses | 2,885 | 3,602 | 3,488 | -3.2% | 20.9% |
Profit before tax | 235 | 341 | 337 | -1.4% | 43.4% |
Tax | 93 | 128 | 122 | -4.7% | 30.6% |
Profit after tax | 142 | 214 | 215 | 0.5% | 51.8% |
Earnings per share | 3.1 | 4.8 | 4.9 |
Key Result Highlights
- The company registered a strong performance across segments & geographies during the quarter, with robust YoY growth in revenues and in profitability.
- EBITDA margins expanded driven by operating leverage and a sharp focus on cost control.
- The strong financial performance and debt reduction of Rs 307 crores resulted in return on capital employed ROCE (net-of-cash) inching closer to the 20% mark.
- 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 & customers.
- This sector account for almost 25% of the company’s exports and as per the management, it will continue to be a key contributor to the growth of the group.
- In H1 FY24, the standalone business secured new orders worth Rs 740 crores across various segment including Rs 300 crores for E-Mobility programs.
- The defence business continues to move from strength to strength in terms of execution and order wins.
- During the quarter, the company’s defence vertical, KSSL secured new business worth Rs 1,100 crores taking the executable order book to Rs 3,000 crores, over the coming 24 months.
- Excluding the impact of seasonally weak quarter in the European market, the overseas operations performance showed improvement consistent with the increase in capacity utilization of the Aluminum business.
Management Outlook
- As per the management, a sustained path to profitability for the overseas business is going to be driven by a combination of achieving profitability in the aluminum business and product/manufacturing optimization in the steel business, all expected to materialize in the next 12 – 18 months.
- Barring any untoward global disturbances which may impact demand sentiment, the management expects the momentum in businesses to continue in H2 FY24 performance along with strong cash flow generation.
- The Indian passenger vehicle (PV) business remains well-placed for growth driven by premiumization and the shift towards Utility Vehicle within the PV space. The management expects this trend to continue supported by burgeoning middle class & higher disposable income.
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
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