Bharat Forge tumbled 13.31% to Rs 1,139.95 after the company stated that it expects the growth momentum to moderate in both domestic & export market across industries in fourth quarter and in FY25.
The companys standalone net profit jumped 30.64% to Rs 377.81 crore in Q3 FY24 as compared with Rs 289.18 crore posted in corresponding quarter last year.Revenue from operations climbed 15.94% year on year to Rs 2,263.4 crore in the quarter ended 31 December 2023. Shipment tonnage rose by 7.1% YoY, Domestic revenue was higher by 34.5% YoY and Export revenue increased by 4% YoY.
The defence business was a major contributor to the growth in revenues while Oil & Gas sector and Agri sector saw a decline in Q3 FY24 as compared to Q3 FY23.
Profit before exceptional items and tax was at Rs 504.41 crore, up 32.71% from Rs 380.07 crore posted in Q3 FY23.
EBITDA jumped 30.9% to Rs 645.20 crore during the quarter as against Rs 616 crore reported in Q3 FY23. EBITDA margin improved to 28.5% in Q3 FY24 as compared to 25.2% recorded in the corresponding quarter previous year.
B.N. Kalyani, chairman & MD, 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. 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 defence & Industrial in Q3 FY24 stands at $ 200 million, a growth of 36% over Q3 FY23. Over time, we expect this number to grow as the new verticals scale up and we enhance our presence in the industrial space.
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For 9M FY24, standalone sales have grown by 19% to Rs 6,640 crores and EBITDA grew by 29% to Rs 1,815 crores. A key driver of this growth has the successful ramp-up of the defence business, in addition to the growth in the core forging business.
During the quarter, the company has secured new business worth Rs 550 crores across automotive, industrial, defence, 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 to 18 months.
Looking ahead in the Q4 & further into FY25, we expect the growth momentum to moderate in both domestic & export market across industries. Our endeavor will be to outperform the market driven by our diversified business mix.
Meanwhile, the company's board has declared an interim dividend of Rs 2.50 per equity share for the financial year 2023-24. The company has fixed has record date as on 23 February 2024. The interim dividend shall be paid on or before 12 March 2024.
Further, the board has approved to raise funds not exceeding Rs 500 crore through term loan, non-convertible debentures or any other debt instruments and delegated authority to investment committee.
Bharat Forge manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.
The scrip hit 52-week high at Rs 1,330 in todays intraday session.
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