Bharat Forge Ltd share Price Today

Bharat Forge (BFL) is India’s leading auto component exporter with strong engineering, technological competencies in forging and metallurgy. With total capacity of 6.83 lakh MT per annum, its products find application in domestic, exports markets across PV, CV, oil & gas, construction & mining, power, defence, etc.

• FY22 standalone segment mix – ~30% CV, ~47% Industrial, ~12% PV
• FY22 standalone export mix - ~68% America, ~29% Europe, ~3% other

BFL reported healthy performance in Q3FY23 on standalone basis

• Standalone sales were up 5.9% QoQ to ₹1,952 crore, tonnage up 2.6% QoQ
• EBITDA was at ₹535 crore, with margins up 310 bps QoQ to 27.4%.
• PAT was up 7.8% QoQ to ₹289.1 crore
• Domestic operations secured new business amounting to ~₹ 265 Crores across automotive & industrial application. The defence vertical of the company also secured an export order worth ~₹600 crores with total orderbook in this domain pegged at ~₹1,950 crores (primarily exports).

Industrial Products company Bharat Forge announced Q3FY24 results:

Consolidated Q3FY24:

• Revenues have increased by 15% on a YoY to Rs 38,664 million, driven by contributions from all businesses.
• EBITDA margins have improved by 450 bps to Rs 6,727 million, driven by initial signs of turnaround in the international businesses. Absolute EBITDA grew by 56%.
• PBT has increased by 85% on a YoY to Rs 3,933 million, driven by an improvement in performance at KSSL and a reduction in losses in the international business.

Standalone Q3FY24:

• Revenues at Rs 22,634 million in Q3FY24 grew by 16% YoY driven by 36% growth in domestic revenue.
• The Defence business was a major contributor to the growth in revenues while Oil & Gas sector and Agri sector saw a decline in Q3FY24 as compared to Q3FY23.
• EBITDA margin at 28.5% in Q3FY24 was up 330 bps YoY. Improved product mix and higher capacity utilization contributed to superior operational performance
• PBT before Exchange gain/ (loss) was Rs 4,865 million in Q3FY24 as against Rs 3,379 million in Q3FY23.

B.N. Kalyani, Chairman & Managing Director, said, "During the quarter, the company delivered a strong performance with sales growing by 15.9% to Rs 2,263 crore and EBITDA growing by 30.9% to Rs 645 crore. EBITDA margins at 28.5% expanded by 330 bps driven by favorable product mix and focus on cost optimization. The balance sheet continues to remain very healthy with Cash on books of ~Rs 1,000 crore (Net of Long-Term Loans). At a consolidated level, Revenues have grown by 15% to Rs 3,867 crore and EBITDA grew by 56% to Rs 673 crore. Exports from Indian manufacturing operations across components, defense & Industrial in Q3FY24 stand at US$ 200 million, a growth of 36% over Q3FY23. Over time, We expect this number to grow as the new verticals scale up and we enhance our presence in the industrial space.

For 9MFY24, standalone sales have grown by 19% to Rs 6,640 crore and EBITDA grew by 29% to Rs 1,815 crore. A key driver of this growth is the successful ramp-up of the defense business, in addition to the growth in the core forging business.

During the quarter, the company has secured new business worth Rs 550 crore across Automotive, Industrial, Defense, Aerospace, and Castings (Ferrous & Aluminum).

In the overseas operations, we have been able to achieve improvement in operational parameters at the Aluminum business in Europe and the same is expected in the US plant soon. We continue to work on creating a sustained path to profitability for the overseas business driven by a combination of achieving profitability in the aluminum business and product/manufacturing optimization in the steel business, all expected to materialize in the next 12 – 18 months.

Looking ahead in the Q4 & further into FY25, we expect the growth momentum to moderate in both the Domestic & Export markets across industries. Our endeavor will be to outperform the market driven by our diversified business mix."

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