Bharat Forge Q1 drops 37.7% to Rs 122 crore

Forging major Bharat Forge (BFL) has recorded a drop of 37.7% in its net profit at Rs 122 crore as compare to Rs 195.21 crore last year for June quarter. The company has also witnessed a decline of 19.3% in its revenue to Rs 957.10 crore as compared to Rs 1,186.10 crore last year.

"We have had a very challenging quarter, largely because of continuing weak demand and inventory de-stocking in the commodities space, especially in the oil & gas space. This coupled with the severe downturn in the North American truck market has resulted in weak performance in Q1. In the quarter, we have witnessed growth in the domestic CV business with performance better than the underlying market growth and also growth in passenger vehicle export business," said BN Kalyani, CMD, Bharat Forge.

 

The strong domestic performance was negated by the 40% de-growth in exports that was affected mainly by a declining US heavy truck market and commodity related sectors in the industrial segment, the company said. BFL's key drivers of future growth will be led by passenger vehicles, aerospace and industrials (other than oil & gas) where we see good traction and growth opportunities.