11 Feb , 2022 By : monika singh
Bharat Forge reported a consolidated net profit of Rs 421.2 crore for the October-December quarter of 2021 against a loss of Rs 209.30 crore it had posted in the corresponding quarter in the previous year. Consolidated revenues during the quarter grew by 39% year-on-year (y-o-y) to Rs 2,394 crore. The company reported a 264% y-o-y growth in standalone net profit to Rs 337 crore, while standalone revenues rose by 54.7% y-o-y to Rs 1,602 crore for the December 2021 quarter.
B N Kalyani, chairman and managing director, Bharat Forge, said the Q3FY22 sales were flat as compared to the previous quarter (Q2FY22) as export revenues had declined by around 10% while the domestic revenues grew by 16.5%. “The drop in exports revenues were primarily on account of curtailment of production of Class 8 trucks due to semi conductor chip shortage,” Kalyani said.
Looking ahead into Q4 FY22 standalone operations, Kalyani said demand remained robust, but supply chain issues persisted which was creating a big hangover especially in the export markets. He expected both the domestic and export markets to witness positive sales development across all major sectors barring the agri equipment sector in India. The demand was robust for the international operations, there were severe and unprecedented inflationary cost pressures across all variable cost elements and was expected to take a toll on the profitability of our companies in Europe in the initial quarters of calendar year 2022, Kalyani said. The company was actively engaged with customers in recovery of these cost increases, he added.
The new aluminum forgings facility in North Carolina was expected to start commercial production soon. This US and the European aluminum forgings facility was expected to drive meaningful topline and profitability growth in the overseas operations.
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