Forging giant Bharat Forge Ltd's has recorded a drop of 3.4 % in its net profit at 102.8 crore as compare to 106.4 crore last year. The company has also witnessed a decline of 4.7% in revenue at 867.6 crore as compare to Rs 910 cr last year. Due to sluggish automotive demand and a significant drop in sale to industrial sectors in India has led to decline in profits, company said in a statement.
Commenting on the results of the company, B N Kalyani, CMD, Bharat Forge Ltd, said, “The quarterly performance continues to be impacted by sluggish demand in the domestic market across automotive and industrial sectors. All global OEM’s are adjusting their production level to correct inventory levels leading to destocking of inventory across the pipeline. We expect to witness downward pressure due to decline in demand across auto and non-auto globally coupled with a sluggish domestic market in the coming two or three quarters.”
Its export revenues recorded a marginal increase of 8.1per cent to Rs 466.7 crore partially benefiting from better realization on account of rupee depreciation.
"In an already weak global economic environment, further weakening of demand has become increasingly evident around the globe across both automotive and industrial sectors," Kalyani added.
Company's domestic revenues declined by 16.2% to Rs 400.9 crore.