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Good growth in the international markets, Europe and the APAC region in particular, have given Bharat Forge a major boost, with the standalone forgings major’s net profit nearly doubling in the third quarter
In the quarter under review, the Pune-based company has posted a net profit of ₹94 crore against ₹47.5 crore in the same three months of FY 13, translating into a growth of 98 per cent year-on-year. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) stood at 25.8 per cent and 20.6 per cent respectively in the two quarters being compared.
The company has declared an interim dividend of ₹2 per share (100%) and fixed February 14 as the record date. The dividend will be paid on February 28.
The total revenue stood at ₹832 crore versus ₹672 crore, a growth of 23.7 per cent on a YoY basis. Significantly, while domestic revenue at ₹329 crore showed a 6 per cent decline over that in the same period of the last fiscal, export earnings grew by 55 per cent to ₹480 crore.
Revenue from Europe in the quarter grew nearly 90 per cent to ₹212 crore, while earnings from exports to the APAC region, with a smaller base, witnessed 101 per cent growth to ₹46 crore. Revenue from the Americas, still the largest market for the company contributing ₹222 crore to BFL’s earnings, grew by 26 per cent.
Baba Kalyani, CMD, said, “BFL did well despite the domestic slowdown because of a diversified product mix and entry into the non-auto sectors in 2008.
The international operations have also registered strong performance driven by cost controls, productivity improvements and innovative new products.
Looking ahead, we expect to see demand levels across geographies stabilising with an upward bias. Overall demand is expected to be moderately better in Q4 of FY14 driven by exports and early signs of recovery in India.”
BFL’s wholly owned subsidiaries have also recorded a growth of 34.5 per cent in total income while the operations registered PAT of ₹13.3 crore against a loss of ₹5.6 crore in the corresponding period previous year.
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