Forging giant Bharat Forge’s net profit jumped 175.5 per cent in the fourth quarter ended March 31, primarily due to the company’s performance driven by a strong momentum in the Indian commercial vehicle (CV) market, coupled with signs of a recovery in the US and Europe.
The Pune-based company reported a consolidated net profit of Rs 56.01 crore during the quarter, compared to a net profit of Rs 20.33 crore in the year-ago period, the company said in a filing to the Bombay Stock Exchange. Revenues increased to Rs 923.89 crore during the period under review — an increase of 67 per cent over Rs 627.33 crore posted in the last fiscal. The main reason being the company’s sustained recovery and strong traction in the non-auto business and its foray into new businesses like power, railways, oil and gas.
Commenting on the results, Bharat Forge CMD Baba Kalyani said, “We are witnessing a strong momentum in the Indian automotive market, coupled with clear signs of a recovery in the North American CV market. The subsidiaries’ performance has turned around, subsequent to the restructuring and demand revival in their respective markets.”
“The traction and recovery in the non-auto business is starting to gather momentum and this will help the company. With new order wins in auto and non-auto sector at the component level, we are looking at a significant growth in the business in the days to come,” he added.