Bharat Forge Q2 net up 6% at Rs 79cr

Bharat Forge has posted a 6% rise in consolidated net profit at Rs 79.1 crore for the quarter ended September 2007, (Q2FY08) when compared with Rs 74.2 crore in Q2FY07.

According to a release issued by the company, the company's consolidated revenue of Rs 1071.2 crore in the quarter is 8% higher than Rs 990.1 crore for Q2FY07.

On a stand-alone basis, Bharat Forge has recorded a revenue growth of 25% at Rs 588.5 crore from Rs 469.89 crore in Q2FY07. Its net profit rose 9% to Rs 67.7 crore from Rs 62.18 crore.

The company's exports recorded a growth of 42% year-on-year despite continued softness in the medium and heavy commercial vehicles market in thr United States and a strong rupee, an official release said, adding that the exports growth - adjusted for currency appreciation - is 54%.

Rupee appreciation that resulted in a lower realisation on the export earnings of the company to the extent of about Rs 26 crore was partially compensated for by a net gain of 10.8 crore on account of the revalorisation of foreign currency loans and deposits, the release said.

Commenting on the results, Baba Kalyani, CMD, Bharat Forge said: "The company has been able to maintain a strong growth momentum, in India, Europe and Asia pacific region. The hit on the EBITDA margins in Q1 has been recouped to a substantial extent and will show further improvement in the coming quarters. The improved performance has come on the back of strong demand from Europe and Asia Pacific which now constitute roughly 50% of the exports. Also important was the successful ramp up in production of heavy duty engine parts and passenger car engine components for the US and European market".

The company's expansion programme at Baramati and Pune for non-auto forgings is progressing as per schedule and the facilities will come on line for trial runs during the early part of the year 2008-09, the release added.