Bharat Forge tumbled 4.33% to Rs 496.70 after the company reported a consolidated net loss of Rs 1.32 crore in Q2 FY21 compared with net profit of Rs 205.48 crore in Q2 FY20.
Net sales during the quarter declined by 36.2% year-on-year (YoY) to Rs 1376.09 crore. Profit before tax in Q2 September 2020 stood at Rs 27.51 crore, down by 86.8% from Rs 208.61 crore in Q2 September 2019. Current tax expense fell by 91.1% YoY to Rs 5.11 crore in Q2 FY21.
On a standalone basis, the company reported 71.3% drop in net profit to Rs 70.3 crore on 30% fall in total revenue to Rs 881.5 crore in Q2 FY21 over Q2 FY20.
B.N. Kalyani, chairman & managing director, said: "The standalone performance during the quarter was on expected lines with traction visible in domestic revenues while the exports revenues continue to witness YoY decline.
The consolidated quarterly weak financials reflect the full impact of Covid19 lockdown on our overseas manufacturing operations in Europe & NA during Apr-Jun period. Despite governmental assistance, they recorded an EBITDA loss of Rs 334 million.
Our restructuring of both the Indian & International operations to enhance sustainability continues. We are focusing on incorporating more digital solutions in manufacturing and we also are making steady progress on further optimization of our fixed cost.
Looking ahead to demand for the coming quarter, the outlook for domestic market is positive but is subject to continued momentum on the investment in infrastructure.
On the export front, there are clear signs of demand improvement, especially in the commercial vehicle segment, but the second wave of Covid cases in Europe & North America and its potential impact on demand is something to keep track of."
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
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