Sluggishness in the domestic automotive market has led to Bharat Forge Ltd posting a decline in its net profit during the second quarter of 2012-13 fiscal.
The Pune-based forgings major saw profit-after-tax drop by 3.4 per cent on a year-on-year basis to Rs 102.8 crore.
Revenues for the standalone entity stood at Rs 867.6 crore, representing a decline of 4.7 per cent over the same quarter last year on the back of 16.2 per cent drop in domestic revenues that touched Rs 401 crore. Sales to industrial sectors in India too were adversely impacted.
Export revenues, however, recorded a marginal increase of 8.1 per cent to Rs 466.7 crore, partially benefiting from better realisation on account of rupee depreciation.
B.N. Kalyani, Chairman & Managing Director, Bharat Forge, said: “The quarterly performance continues to be impacted by sluggish demand in the domestic market across automotive & industrial sectors. All global OEMs are adjusting their production level to correct inventory levels leading to de-stocking of inventory across the pipeline.’’
The company expects to witness downward pressure due to decline in demand across auto & non-auto sectors globally coupled with a sluggish domestic market in the coming two or three quarters, he added.