Bharat Forge shares fall 5% on muted Q3 numbers; check two key factors that impacted earnings

The company had posted a profit of ₹254.45 crore in the third quarter last fiscal, Bharat Forge Ltd (BFL) said in a regulatory filing.

Reacting to the numbers, shares of Bharat Forge slipped as much as 5.4% to ₹1,044.70 apiece on the NSE.

Revenue from operations in the quarter under review stood at ₹3,475.55 crore as against ₹3,866.4 crore in the corresponding period last fiscal, it added.

Total expenses in the third quarter were lower at ₹3,165.37 crore as compared to ₹3,529 crore in the year-ago period, the company said.

BFL said its board has declared an interim dividend of ₹2.5 per equity share of face value of ₹2 each at the rate of 125%.

What management said

Bharat Forge Group secured new orders worth ₹830 crore across various business verticals in Q3FY25.

BFL Group’s defence business posted revenue of ₹337 crore in Q3. With order wins of ₹97 crore in Q3, the executable order book as of December 31 stands at ₹5,706 crore.

Aerospace business

For the aerospace business, "We have approved an investment for setting up a dedicated state-of-the-art machining line for landing gear components and a ring mill for manufacturing high-precision forging to address the growing demands for jet engine components from the global aerospace industry. The capacities will come online in FY2027. We expect the aerospace business to witness strong growth over the coming 3-4 years," the company added.

JS Auto update

JS Auto continued registering strong performance during the quarter with revenue growing by 20% to ₹166 crore and EBITDA growth of 24% at ₹23 crore as compared to Q3 FY24. During 9M FY25, JSA won orders worth ₹183 crore, benefiting from the positive momentum built around Indian manufacturing. We expect this business to surpass the ₹1,000 crore revenue milestone in the next 2-3 years, the company said in its Q3 earnings update.

Outlook

BN Kalyani, Chairman & Managing Director, said that looking ahead into Q4 FY25 & FY26, the company expects the consolidated performance to be stable, as pockets of strength emerge from the newer businesses to offset the slowdown in the automotive sector globally.

"We will undertake a thorough review of the manufacturing footprint of our overseas business with an endeavor to achieve operational stability in this challenging environment," the MD added.

Bharat Forge stock performance

Shares of Bharat Forge have remained absolutely flat in the past 12 months, while in the past six months, the stock price has fallen 31%.