Bharat Forge has posted a 9 per cent drop in its Q4 13 net profit that stood at Rs 50 crore versus Rs 55 crore in the same quarter of the previous fiscal.

Impacted by lower sales both in the domestic as well as overseas markets across verticals, the standalone company’s earnings in the quarter under review dropped 31 per cent to Rs 675 crore against Rs 977 crore during Q4 12. EBIDTA for the quarter stood at 22.7 per cent (25.7 per cent).

During the 2012-13 fiscal, Bharat Forge posted a net profit of Rs 306 crore (Rs 362 crore), translating into a decline of 15 per cent year on year. Earnings stood at Rs 3,151 crore (Rs 3,686 crore), a YoY decline of 14.5 per cent.

Calling FY13 one of the most challenging years for the Indian auto industry in a decade, the company said the M&HCV segment – its main market - saw a decline of 27.6 per cent for the year as a whole, while it declined 40 per cent in Q4 13 (compared to Q4 12).

During the year, orders from the industrial sector across Railways, power (renewable & non-renewable), government agencies and capital goods segment in the domestic market sectors dried up and revenues from the industrial segment declined 23 per cent to Rs 510 crore.

On the export front, BFL’s major markets showed strong growth in the first half of the year, but an equally weak environment in the second half. The demand decline which occurred in the latter part of FY13 was similar to the carnage of FY 08-09 during the global meltdown as the decline was sudden and concurrent across markets, customers and segments, Bharat Forge said.

BFL has completed the restructuring of its American Operations (BFA) with the sale of its assets for $11.25 million. The transaction does not include the business/order book of BFA which have already been transferred to India.

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