Bharat Forge shares up 5% post Q1 results; board okays Rs 2,000 crore fundraising

Shares of Bharat Forge climbed 5 per cent in Thursday's trade following the company's June quarter results. The company board also approved up to Rs 2,000 crore in fundraising, whose mode will be decided by its investment committee – strategic business, later. 

Bharat Forge said its standalone profit after tax fell 13.5 per cent YoY to Rs 269.40 crore in the June quarter compared with Rs 311.40 crore in the same quarter last year. The profit print was hit by Rs 146 crore exceptional one-time loss. Kalyani Powertrain Limited, a wholly owned subsidiary, holds 64.29 per cent equity shares of Tork Motors that is engaged in manufacturing of electric bikes. In light of recent developments in two-wheeler EV market and its adverse impact on Tork Motors operations, a provision for impairment was considered in consolidated financial statements. 

Revenue for the quarter was down 0.8 per cent YoY to Rs 6,750 crore from Rs 6,802 crore YoY. Ebitda jumped 18.9 per cent YoY to Rs 658 crore, with Ebitda margins coming in at 28.1 per cent against 26 pr cent YOY.

Bharat Forge shares climbed 5.45 per cent to hit a high of Rs 1,643.40 on BSE.

On consolidated basis, revenues was up 5.9 per cent at Rs 4,106 crore, while Ebitda grew 22.8 per cent to Rs 760 crore.

"Steady execution of the defence export orders and recovery in the Oil & Gas business sustained the operating performance. The group secured new orders worth Rs 980 crore across defence, ferrous & aluminum castings and the core forging business. BFL group’s defence business posted revenue of Rs 642 Crore in Q1 registering a jump of 147 per cent YoY," Bharat Forge said.

With order wins of Rs 775 crore, the executable order book stood at Rs 5,400 crore, as on June 30, with a mix of artillery guns, vehicles and consumables.

"JS Auto continued to witness strong momentum and during the quarter recorded revenue of Rs 159 Crore and Ebitda at Rs 22 Crores and PBT of Rs 10 crore, growth of 26%, 48% and 89% respectively vs Q1 FY24. As the company embarks on various productivity and cost improvement measures, we expect the operating profitability amply supported by organic sales growth to improve over the next 24 – 36 months," Bharat Forge said.

Chairman & Managing Director BN Kalyani said the overseas operations recorded sales of Rs 1,320 crore and Ebitda of Rs 13 crore. The weak CV demand in Europe was a spoiler in an otherwise stable quarter for the overseas operations, he said.

"Looking ahead into Q2 FY25, we expect continued positive momentum in the Indian entities across Forging, castings & Defence and for the overseas operations, we reiterate our expectation that these businesses will see an improvement in operational parameters resulting in reduction of losses in FY25,” Kalyani said.