Bharat Forge jumped 5.11% to Rs 823.50 after the company posted a consolidated net profit of Rs 153.70 crore in Q1 FY22 as against a net loss of Rs 125.80 crore in Q1 FY21.
Consolidated total revenue grew 1.2% quarter on quarter and 82.6% year on year to Rs 2,107.70 crore in Q1 FY22. The profit before tax rose 13.5% quarter on quarter to Rs 278.5 crore in Q1 FY22. The company posted a pre-tax loss of Rs 119.1 crore in Q1 FY21.EBITDA grew 20.7% quarter on quarter to Rs 454.6 crore in Q1 FY22 over Q4 FY21. EBITDA margin improved to 21.6% in Q1 FY22 from 18.1% in Q4 FY21. EBITDA margin in Q1 FY21 stood at 1%. Pursuant to the Voluntary Retirement Scheme (VRS) declared by the company for its employees at Chakan plant in June 2021, expenses of Rs 61.64 crore are provided for the quarter ended 30 June 2021 in the standalone and consolidated financial results. The company also reported an exchange fluctuations loss of Rs 4.4 crore in Q1 FY22 including revaluation of foreign currency assets and liabilities.
B.N. Kalyani, chairman & MD of the company said, "The company during the quarter managed to deliver a solid number across the board performance despite challenges posed the Covid lockdown and subsequent impact on economic activity in India. On a sequential basis, total revenues grew by 4.9% to Rs 1371.8 crore on back of exports growth of 25.3% to Rs 915.6 crore while the domestic revenues declined by 21.8% to Rs 441.8 crore. EBITDA margins have expanded 300 basis points on back of favorable product mix. During the quarter, we completed the acquisition of Sanghvi Forgings at a cost of Rs 77.06 crore. This facility, although currently small in scale, will play a very meaningful role in expanding our product portfolio to address significant opportunities in the Indian Industrial space over the medium term. As part of our growth strategy, we continue to look at enhancing our presence in the Indian manufacturing ecosystem through organic and more importantly inorganic avenues in our core business and newer verticals. The international operations in Q1 CY21 have registered EBITDA of 11.7% which is supported by focus on cost optimization & product mix improvement. The improvement in performance continues to be a work in progress with many more milestones to be achieved in the journey."
He further added, "Looking ahead into Q2 FY22, we expect the overall growth to continue supported by recovery in the domestic MHCV market and sustained improvement in demand levels in the export market. Potential impact on end demand because of supply issues pertaining to semiconductors & the sustained increase of input costs are factors to keep track of in the coming months."
The company's long term debt stood at Rs 2653.10 crore as of 30 June 2021 compared with Rs 2632.80 crore on 31 March 2021.
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
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