Bharat Forge reported a consolidated net loss of Rs 127.32 crore in Q1 June 2020 as against net profit of Rs 171.92 crore posted in Q1 June 2019.
Revenue from operations for Q1 June 2020 stood at Rs 1154.21 crore, tumbling 50% from Rs 2327.85 crore in the same period last year. The company clarified that a drop in revenue was due to the shutdown of manufacturing operations in the month of April and May on account of the lockdown imposed by the government to control the spread of the pandemic.Bharat Forge reported a pre tax loss of Rs 146.27 crore in quarter ending June 2020 as compared to a profit before tax of Rs 266 crore in quarter ending June 2019. The company said it received a tax rebate of Rs 18.95 crore in Q1 June 2020.
Consolidated EBITDA tumbled 97% to Rs 11.2 crore in Q1 June 2020 over Q1 June 2019. EBITDA margin declined to 1% in Q1 June 2020 from 17.8% in Q1 June 2019.
Commenting on company's performance, B.N. Kalyani, Chairman & Managing Director said, The quarter gone by was impacted by the COVlD-19 pandemic and the stringent measures adopted by countries to control the spread. The government imposed economic lockdown coupled with lower underlying demand had an adverse impact on Sales. This has resulted in the company posting a loss of Rs 563 million for the quarter. Despite being operational for only one month in the quarter and running at 20% capacity utilization, we were able to reduce breakeven levels through continued focus on cost reduction and improve productivity. In these uncertain times and working within guidelines set by local authorities, we continue our steadfast focus on 4C's: meeting customer demand, ensuring the safety & wellbeing of our colleagues, control on costs and working on the cost reduction initiatives already mapped out.
He further added, "Looking ahead in to demand for the coming quarter, we are witnessing marginal improvement in demand across both domestic & export markets. We expect our domestic revenues to be flat as compared to Q2 FY20 while the exports will be lower than levels witnessed in Q2 FY20. The sustainability in the recovery in underlying demand is a key factor to track in the coming months."
Shares of Bharat Forge were up 5.05% at Rs 433.75 on BSE. The result was announced during market hours today, 12 August 2020.
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
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