New Delhi: During Q2 FY24, Bharat Forge Limited registered a strong performance across segments & geographies, with robust YoY growth of 20.7% in revenues and 29.3% in profitability.
Revenues at INR 2249. 4 crore in Q2FY24 grew by 21% YoY driven by 21% growth in export and 21% growth in domestic revenue. PV exports grew39% YoY. Growth in domestic revenues was driven by 1.5X increase in Defence business, the company said in a media release..
EBITDA margin at 27.4% in Q2 FY24 was up 330 bps YoY. Improved product mix and higher capacity utilization contributed to the superior operational performance
PBT before exchange gain/ (loss) was INR 473 crore in Q2 FY24 as against INR 357.7 crore in Q2 FY23 driven by higher volumes in core business and defence business.
. The strong financial performance and debt reduction of INR 307 crore resulted in ROCE (net-of-cash) inching closer to the 20% mark.
Passenger Vehicles has been a standout sector for the company over the past few quarters and it continues to rise driven by market share gains, increasing value addition order wins from newer geographies & customers. Today this sector accounts for almost 25% of its exports and will continue to be a key contributor to the growth of the group.
In H1 FY24, the standalone business secured new orders worth INR 740 crore across various segment including INR 300 crore for E-Mobility programs.
The defence business continues to move from strength to strength in terms of execution and order wins. During the quarter, the company’s defence vertical, KSSL secured new business worth INR 1,100 crore taking the executable order book to INR 3,000 core, over the coming 24 months.
Excluding the impact of a seasonally weak quarter in the European market, the overseas operations performance has shown improvement consistent with the increase in capacity utilization of the aluminium business. A sustained path to profitability for the overseas business is going to be driven by a combination of achieving profitability in the aluminium business and product/manufacturing optimization in the steel business, all expected to materialize in the next 12 – 18 months.
“Barring any untoward global disturbances which may impact demand sentiment, we expect the momentum in our businesses to continue in H2 FY24 performance along with strong cash flow generation, the company said.
