Schedule a Call Back
Bharat Forge Q1; Defence revenue up 147%, order book at Rs 54 billion
Industry News- Aug 12,24
The profit was impacted by an exceptional loss of Rs 1.46 billion, including an impairment provision of Rs 1.45 billion related to its investment in Tork Motors Pvt. Ltd., where Bharat Forge holds a 64.29% stake.
Bharat Forge Ltd., a leading manufacturer of machined components, has reported a net profit of Rs 2.69 billion for the April-June quarter. The profit was impacted by an exceptional loss of Rs 1.46 billion, including an impairment provision of Rs 1.45 billion related to its investment in Tork Motors Pvt. Ltd., where Bharat Forge holds a 64.29% stake.
The company also recorded additional exceptional costs related to a Voluntary Retirement Scheme, impairment of investments in BF Infrastructure Ltd., and provisions for a loan to Tevva Motors Ltd. Excluding these losses, Bharat Forge's net profit aligns with expectations.
For Q1, Bharat Forge's revenue reached Rs 23.38 billion, marking a 10% increase from the previous year. The company's EBITDA grew by 18.7% year-on-year to Rs 6.51 billion, meeting the forecast of Rs 6.5 billion. Operating margins expanded by 200 basis points to 28%, exceeding the anticipated 27.6%.
Bharat Forge's strong performance was driven by steady execution of defence export orders and a recovery in the Oil & Gas sector. The company secured new orders worth Rs 9.8 billion across defence, ferrous & aluminium castings, and core forgings.
Defence revenue soared by 147% to Rs 6.42 billion, and the executable order book now stands at Rs 54 billion, including orders for artillery guns, vehicles, and consumables.
Looking ahead, Bharat Forge remains optimistic about its Indian operations in forgings, castings, and defence sectors, while expecting improved performance in its overseas ventures, leading to reduced losses in FY25.
The company has also approved plans to raise Rs 20 billion through debt or equity issuance and will convert a $12 million loan to a subsidiary into equity.
(CNBCTV18)
Related Stories
Smart Manufacturing
India must emerge as an innovation-driven economy: Baba Kalyani
In this message, on the occasion of India's 78th Independence Day, Baba Kalyani, Chairman & MD of Bharat Forge Ltd, emphasises on India's journey towards becoming a global leader and the manufacturi..
Read moreAerospace Defence
Jindal Stainless to supply stainless steel and steel sheets for BrahMos
Jindal Stainless recently supplied 3 mm special alloy steel sheets for the Supersonic Missile-Assisted Release of Torpedo (SMART) system.
Read moreAerospace Defence
Marine Electricals signs MoU with Cummins India for Indian Navy services
The MoU also involves Marine Electricals' associate company, Athmer India Private Limited, which will contribute to the development of special auxiliary machines in related fields.
Read moreRelated Products
Troop Comforts revolutionises military gear with indigenous innovations
Aerospace & Defence
Troop Comforts Ltd (TCL), a state-owned defence corporation, has recently received a request for proposal (RFP) from the Northern Command of the Indian Army for its indigenously developed military gea Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
