Diversified forging company Bharat Forge reported a 5 per cent growth in consolidated net profit for the quarter ended June, 2022 following a robust rise in revenues.
The Pune-based company posted ₹160.37 crore as its consolidated net profit for the reporting quarter as against ₹152.74 crore posted in the same quarter last year.
Consolidated revenue from operations grew 35 per cent to ₹2,851.46 crore during the June quarter, as against ₹2,107.67 crore posted in the same quarter last year.
Impacted by expenses
Margins were impacted by other expenses which included the impact of exchange fluctuations on foreign currency transactions of ₹100.91 crore at the consolidated level including revaluation of foreign currency assets and liabilities.
BN Kalyani, Chairman and Managing Director of Bharat Forge, said, “European operations have delivered a stable performance as per plan, in-spite of high input prices and weak market conditions. The new green-field aluminium forging facility in North America is still in a ramp-up phase and operating at low utilisation levels which has adversely impacted the overall quarterly profitability. We expect the business to turnaround in the second half of the fiscal.”
Recovery of industrial business
“We remain positive on Bharat Forge as the domestic commercial vehicle demand trend is now improving after several years of decline. Though CV exports are currently facing semiconductor/supply headwinds, long-term outlook is positive. Further, we remain positive about the recovery of industrial business. The company’s initiatives towards diversifying into other businesses will further aid revenue growth,” said a report by Prabhudas Lilladher.