Standalone revenues came in at Rs 1,864 crore (up 5.9% QoQ, I Direct estimate: Rs 1,742 crore), amid 5.6% tonnage growth to 61,1495 MT. The growth was led by domestic operations wherein revenues grew 12% QoQ to Rs 772 crore (CV up 3.8%, PV up 28.3%, Industrial up 16.1%). International revenues were up modest 1.8% QoQ at Rs 1066.4 crore (CV up 1.2%, PV up 24.8%, industrials down 8.7%)
Standalone EBITDA in Q2FY23 stood at Rs 453 crore, with consequent margins placed at 24.3% (down 40 bps QoQ) vs. our expectation of 24.4%. Margin performance was negatively impacted by gross margin decline (down ~310 bps QoQ) and was however offset by lower other expense (down ~220 bps QoQ)
Reported standalone PAT stood at Rs 268.1 crore, up 10% QoQ (I Direct estimate: Rs 232 crore), primarily tracking higher absolute EBITDA and higher than anticipated other income. At the consolidated level, the company reported PAT of Rs 141.6 crore, thereby implying loss from subsidiaries for the quarter to the tune of Rs125 crore
For Q3FY23 management informed about stable performance across both the domestic and export markets driven by higher end market demand as compared to Q2FY23
In Q2FY23, BFL’s domestic operations secured new business amounting to Rs850 Crores across automotive & industrial application. KSSL, the defence vertical of the company (wholly owned subsidiary) also secured an export order worth US$ 155.5 million (Rs1,250 crore) to supply Artillery Gun system, executable over a three year period
Bharat Forge ltd is a leading auto component player with exposure across CV, PV & industrial space (incl. Oil & gas domain) amidst strong engineering capabilities & stands to benefit from upbeat domestic demand across CV and PV space and steady state overseas CV demand. It is progressing well on the EV front through presence in Tork motors and JV for manufacturing of E-Axles. With Debt: Equity
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