Bharat Forge Q2 Results: Net profit rises 13.5% YoY to ₹243 crore, revenue down 2.3%

Bharat Forge (BFL) on Thursday, November 14, released its September quarter results, reporting a consolidated net profit of ₹243 crore, a 13.55% increase from ₹214 crore in the same period last year.

The company posted a consolidated revenue of ₹3,689 crore and an EBITDA of ₹690 crore. Despite a 2.3% year-on-year (YoY) decline in revenue due to weakness in the European automotive market, EBITDA grew by 10.8% leading to a margin improvement of 220 basis points (bps) from 16.5% to 18.7%.

During the quarter, the group secured new orders worth ₹1,207 crore across defence, ferrous and aluminium castings, and core forging. The total order wins for H1 FY25 amounted to ₹2,216 crore, with two-thirds coming from defence and one-third from the components business, as per the company's Q2 earnings filing.

BFL Group’s defence business posted revenue of ₹509 crore in Q2, registering a jump of 67% YoY. With order wins of ₹642 crore in Q2, the executable order book as of September 30 stood at ₹5,905 crore. The order book does not include any potential orders from the domestic or export markets.

JS Auto continues to register impressive operating performance during the quarter, with revenue growth of 32% to ₹165 crore and EBITDA growth of 60% at ₹20 crore compared to Q2 FY24. In H1 FY25, JSA won orders worth ₹173 crores and is clearly benefiting from the shift of the manufacturing supply chain to India.

The company expects this business to continue to register strong performance in the foreseeable future.

The overseas operations recorded sales of ₹1,145 crore and EBITDA of ₹16 crore. The sluggish economic condition in Europe and its impact on the automotive industry is delaying the recovery in overseas business.

"Looking ahead to H2 FY25, we expect performance to remain stable compared to H1 FY25 as we continue focusing on revenue growth and profitability improvement in our subsidiaries, both in India and overseas," said Chairman and Managing Director B.N. Kalyani.

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