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Bharat Forge, India's biggest forging company, has set itself an ambitious target of doubling revenues to Rs 7,000 crore in four years at the stand-alone level.
Addressing shareholders in its latest annual report, Chairman Baba Kalyani said, the ‘ambitious plan to double the stand-alone operations topline from Rs 3,400 crore achieved in FY2013-14 to about Rs 7,000 crore by FY2017-18, a growth of 20 per cent compounded annual growth rate over the period’.
“Your company plans to achieve this through several growth initiatives led by improving market share and creating a broader product offering in industries we currently serve,” Kalyani said in the 54th annual report.
Driven by improvement in capacity utilisation and focussed cost reduction initiatives, Bharat Forge’s profit jumped 80 per cent last year to Rs 719 crore from Rs 399 crore posted in 2013-14.
During last year, it also strengthened its balance sheet retiring debt of around Rs 530 crore, including Rs 407 crore high cost rupee debt.
Addressing shareholders in its latest annual report, Chairman Baba Kalyani said, the ‘ambitious plan to double the stand-alone operations topline from Rs 3,400 crore achieved in FY2013-14 to about Rs 7,000 crore by FY2017-18, a growth of 20 per cent compounded annual growth rate over the period’.
“Your company plans to achieve this through several growth initiatives led by improving market share and creating a broader product offering in industries we currently serve,” Kalyani said in the 54th annual report.
Driven by improvement in capacity utilisation and focussed cost reduction initiatives, Bharat Forge’s profit jumped 80 per cent last year to Rs 719 crore from Rs 399 crore posted in 2013-14.
During last year, it also strengthened its balance sheet retiring debt of around Rs 530 crore, including Rs 407 crore high cost rupee debt.
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“I am proud to be leading your company as we enter into the 50th year of operations, truly a momentous landmark for us. It has been a wonderful journey so far and I truly believe that the best is yet to come,” added Kalyani.
“I am proud to be leading your company as we enter into the 50th year of operations, truly a momentous landmark for us. It has been a wonderful journey so far and I truly believe that the best is yet to come,” added Kalyani.
The auto sector contributes around 50 per cent of the total exports of Bharat Forge. The revenues from the auto segment in the export markets in FY 2014-15 grew as compared to FY 2013-14 mainly on account of new customer addition and a ramp up in the passenger vehicles orders.
In the coming year, growth in the auto sector is expected to be led by the North American Free Trade Agreement region, strong orders, long backlogs, better freight volumes, a healthy economic outlook, operators and the sharp plunge in crude prices can be the contributing factors for a sustainable year forward, if not better, the report added.
We expect the Heavy Truck segment volumes to grow by two-five per cent over the next two years. We expect to continue to grow our export business on the automotive side by focusing on new product development, working on providing solution such as light weighting, fatigue enhancement, increasing our market share with existing customers while simultaneously working on adding new customers and markets, said the report.
