Pune, Jan 21 Forging and auto component company Bharat Forge Ltd (BFL) has announced that its Q3 revenue stands at Rs 572 crore, a growth of 16 per cent year-on-year. The EBITDA at Rs 152 crore is up 8 per cent in the same period.
Announcing its results today, the company said combined revenue stands at Rs 1,099 crore, a growth of 6 per cent.
Commenting on the results, Mr Baba N. Kalyani, Chairman and Managing Director, said, “The last few quarters have been challenging for the Indian auto industry, particularly to companies which are large exporters due to the double effect of Indian market slowdown coupled with the drastic reduction in US CV market.”
According to a statement, the US commercial vehicle space witnessed a 40 per cent fall in production on a year-on-year basis, which was much higher than the expected 25 per cent. This has resulted in lower production and slower ramp-up of BFL’s new HDEP programmes. “We expect the US CV market to recover in second half of 2008,” it added.
Mr Kalyani said that the domestic market, which saw a drop over last year in the first two quarters of the current fiscal, has shown signs of recovery in Q3. “Markets expect it to gain momentum in the coming quarters,” he added.
Capital goods foray
As a part of the company’s foray into the capital goods sector, Bharat Forge will invest in a joint venture with NTPC for manufacturing equipment for the power and capital goods sector. BFL will be the majority stake holder in the joint venture.
The company’s non-auto capacity expansion programme is on stream and commercial production for its Baramati and the open forge plant at Pune will begin towards the end of this fiscal and beginning of fiscal 2009-10 respectively.