Bharat Forge Q2 results: Net profit rises 13.5%, revenue from operation down 2.3%

Despite the rise in net profit, the auto component company’s revenue from operations fell 2.3% to ₹3,688 crore in the second quarter of this fiscal in contrast to ₹3,744 in the corresponding quarter a year ago.

The drop in revenue was driven by weakness in the European automotive market.

However, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew by 10.8% which led to a rise in the margin from 16.5% to 18.7%

In the quarter, the company secured new orders worth ₹1,207 crore across Defence, casting (of ferrous and aluminium) and the core forging business.

In the first half of the financial year 2024-25, the auto ancillary won ₹2,216 crore worth of orders with two-thirds coming from defence and one-third from other business components.

The company’s overseas operations reported sales worth ₹1,145 core and EBITDA of ₹16 crore.

“Looking ahead into H2 FY25, we expect the performance to be stable as compared to H1 FY25 as we continue to focus on revenue growth & profitability improvement in our subsidiaries (Indian & Overseas),” said B.N. Kalyan, Chairman & Managing Director of Bharat Forge.

Part of the Kalyani Group, Bharat Forge is engaged in the manufacturing and selling of forged and machined compoundants for the auto and industry sector.

It had a market capitalisation value of ₹61,795.25 crore on Thursday, according to the NSE.