Forging giant Bharat Forge Ltd's has recorded a drop of 6.3 per cent in its net profit at Rs 964 crore as compare to Rs 1028 crore last year. The company has also witnessed a decline of 2.6 per cent in revenue at Rs 8451 crore as compare to Rs 8676 crore 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,
“In the quarter gone by, we have witnessed sequential improvement in performance across all parameters despite flattish volumes, an indicator of the efforts on cost controls and productivity focus bearing fruits. While we are witnessing demand decline in India, profitability is improving due to combination of cost control, robust execution and currency tailwinds.” The Commercial vehicle sector continues to register frail performance in the backdrop of strong headwinds and pessimistic sentiments, leading to M&HCV industry volumes to levels witnessed during the 2008 Global Financial crisis, company said in a statement.
However, the company has achieved a major breakthrough with the Indian Railways for supply of fully machined crankshaft.
