Bharat Forge Q1 net profit increases slightly to Rs 160 cr; stock up 3.5%
Auto component maker Bharat Forge Ltd on Thursday reported consolidated net profit of Rs 160.37 crore for the first quarter ended June 30.
The company had posted a consolidated net profit of Rs 152.75 crore in the same quarter of the previous fiscal year, Bharat Forge said in a regulatory filing.
Its consolidated operating income during the period under review stood at Rs 2,851.46 crore. It was Rs 2,107.68 crore a year ago, he added.
The company’s total expenditure in the first quarter was Rs 2,643.95 crore, down from Rs 1,874.24 crore a year ago, the company said.
Bharat Forge said the consolidated results are not comparable to last year due to its alignment of the accounting periods of all subsidiaries, associates and joint ventures for a better presentation of the group’s operating performance.
“On a consolidated level, the European operations delivered a stable performance according to plan, despite high input prices and weak market conditions.
“The new greenfield aluminum forging facility in North America is still in the ramp-up phase and operating at low utilization levels, which negatively impacted overall quarterly profitability. We expect this business to pick up in the second half of the financial year,” Bharat Forge Chairman and Managing Director BN Kalyani said.
The Indian operations secured new business worth about Rs 350 crore in automotive and industrial applications during the period, he added.
Bharat Forge said its automotive business in India saw a sequential decline in revenue in line with the underlying market decline as production of medium and heavy commercial vehicles and passenger vehicles in the industry fell.
However, automotive export revenues increased, driven by both the commercial vehicle and passenger vehicle segments, he said, adding that in Europe the geopolitical crisis has impacted aggregate demand. and the supply chain.
“The impact of high energy prices across Europe and central bank monetary tightening will be closely watched as they could potentially provide potential opportunities for new business,” the company said.
Regarding the outlook, Kalyani said, “Looking to the second quarter of FY23, we expect stable performance in both domestic and export markets despite the uncertainty resulting from macroeconomic headwinds caused by the tightening monetary”.
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