For the first time, revenue from exports, which recorded 31 per cent growth, has exceeded income from domestic sales, for Bharat Forge.
This, coupled with better realisations on account of rupee depreciation, has helped the forgings major report a net profit of Rs 105 crore during Q1 13 — an 8 per cent rise over the same quarter of last year.
The sales income for the standalone entity in the three months under review stood at Rs 936 crore, a growth of 9 per cent year on year. EBITDA margins during the quarter increased by 1.6 per cent to 27.3 per cent against 25.7 per cent in Q1 12.
On the back of strong demand from US CV market & non-auto traction, export earnings recorded robust 30.8 per cent growth over Q1 12 to stand at Rs 498 crore.
On the other hand income from sales in the domestic market was lower by 8.1 per cent to Rs 436 crore on account of sluggish M&HCV volumes which declined by 20.9 per cent.
The North American heavy truck market witnessed 27 per cent increase in production compared to the same period previous year.
The region contributed in a big way (Rs 254 crore) to export income, witnessing 66 per cent growth in revenue YoY. Revenue from Europe grew 6.4 per cent to stand at Rs 216 crore.
However, the global economic uncertainty coupled with soft US data is starting to weigh on the confidence of fleet operators and has resulted in postponement of purchasing decision for new vehicles, BFL said.
The European Automotive markets continue to remain subdued weighed down by weak macro-economic indicators and the Eurozone crisis. New CV and passenger vehicle registrations declined by 12 per cent and by 6 per cent respectively in the April-June period.
BFL’s non-auto business continues to be a major growth driver for the company recording growth of 16.4 per cent to Rs 346 crore driven by increase in off take from Oil & Gas and Construction & Mining sectors. In the domestic market however, the business has seen a drop in demand due to lack of new investments from capital intensive sectors.
The company’s overseas operations posted a top line of Rs 706 crore, a marginal decline over Rs 710 crore in Q1 12. However, the major disappointment came from the China operations which had turned around last year.
This year, China saw an 8 per cent drop in its income which stood at Rs 149 crore, while the company posted a pre-tax loss Rs 12 crore.