Quarter ended December 2024 compared with Quarter ended December 2023.
Net sales (including other operating income) of Bharat Forge has declined 10.11% to Rs 3475.55 crore. Sales of Forgings segment fell 8.89% to Rs 3,060.63 crore (accounting for 84.60% of total sales). Sales of Others segment has gone up 15.55% to Rs 220.24 crore (accounting for 6.09% of total sales). Sales of Defence segment has gone down 22.47% to Rs 337.01 crore (accounting for 9.32% of total sales). Inter-segment sales rose Rs 118.30 crore to Rs 142.33 crore.
Profit before interest, tax and other unallocable items (PBIT) has slumped 11.85% to Rs 473.58 crore. PBIT of Forgings segment fell 10.16% to Rs 440.10 crore (accounting for 92.93% of total PBIT). PBIT of Others reported profit of Rs 4.67 crore compared to loss of Rs 20.36 crore. PBIT of Defence segment fell 57.50% to Rs 28.80 crore (accounting for 6.08% of total PBIT).
PBIT margin of Forgings segment fell from 14.58% to 14.38%. PBIT margin of Others segment rose from negative 10.68% to 2.12%. PBIT margin of Defence segment fell from 15.59% to 8.55%. Overall PBIT margin fell from 13.48% to 13.09%.
Operating profit margin has declined from 18.05% to 17.96%, leading to 10.53% decline in operating profit to Rs 624.38 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.24% to 41.68%. Purchase of finished goods cost fell from 6.97% to 0.22%. Employee cost increased from 11.60% to 12.63%. Other expenses rose from 24.20% to 27.38%.Other income fell 31.42% to Rs 38.37 crore. PBIDT fell 12.08% to Rs 662.75 crore. Provision for interest fell 29.86% to Rs 95.96 crore.
PBDT fell 8.14% to Rs 566.79 crore. Provision for depreciation fell 2.42% to Rs 218.25 crore.
Profit before tax down 11.39% to Rs 348.54 crore. Provision for tax was expense of Rs 134.22 crore, compared to Rs 140.59 crore. Effective tax rate was 38.68% compared to 35.59%.
Net profit attributable to owners of the company decreased 19.58% to Rs 212.76 crore.Promoters' stake was 44.07% as of 31 December 2024 ,compared to 45.25% as of 31 December 2023 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Bharat Forge has declined 2.15% to Rs 11270.2 crore. Sales of Forgings segment fell 6.64% to Rs 9,525.00 crore (accounting for 81.55% of total sales). Sales of Others segment has gone down 58.18% to Rs 666.88 crore (accounting for 5.71% of total sales). Inter-segment sales rose Rs 279.00 crore to Rs 409.31 crore.
Profit before interest, tax and other unallocable items (PBIT) has jumped 8.09% to Rs 1,577.27 crore. PBIT of Forgings segment rose 12.47% to Rs 1,381.84 crore (accounting for 87.61% of total PBIT). PBIT of Others segment fell 92.29% to Rs 17.77 crore (accounting for 1.13% of total PBIT).
PBIT margin of Forgings segment rose from 12.04% to 14.51%. PBIT margin of Others segment fell from 14.45% to 2.66%. Overall PBIT margin rose from 12.37% to 13.50%.
Operating profit margin has jumped from 16.62% to 17.86%, leading to 5.12% rise in operating profit to Rs 2,012.62 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.28% to 42.26%. Purchase of finished goods cost fell from 3.08% to 1.44%. Employee cost increased from 11.96% to 12.33%. Other expenses rose from 24.14% to 26.25%.Other income fell 12.13% to Rs 151.66 crore. PBIDT rose 3.69% to Rs 2164.28 crore. Provision for interest fell 12.29% to Rs 329.49 crore.
PBDT rose 7.20% to Rs 1834.79 crore. Provision for depreciation rose 1.37% to Rs 649.86 crore.
Profit before tax grew 10.69% to Rs 1,184.93 crore. Extraordinary items were decreased to Rs -151.77 crore. Provision for tax was expense of Rs 401.07 crore, compared to Rs 390.13 crore. Effective tax rate was 38.87% compared to 36.35%.Minority interest increased 11.27% to Rs -28.51 crore. Net profit attributable to owners of the company decreased 7.83% to Rs 659.16 crore.
Promoters' stake was 44.07% as of 31 December 2024 ,compared to 45.25% as of 31 December 2023 .
Full year results analysis.
Net sales (including other operating income) of Bharat Forge has increased 21.47% to Rs 15682.07 crore. Sales of Forgings segment rose 14.19% to Rs 13,717.90 crore (accounting for 85.22% of total sales). Sales of Others segment has gone up 40.03% to Rs 818.34 crore (accounting for 5.08% of total sales). Sales of Defence segment has gone up 280.34% to Rs 1,560.55 crore (accounting for 9.69% of total sales). Inter-segment sales rose Rs 20.27 crore to Rs 414.72 crore.
Profit before interest, tax and other unallocable items (PBIT) has jumped 60.13% to Rs 1,953.48 crore. PBIT of Forgings segment rose 42.10% to Rs 1,842.62 crore (accounting for 94.32% of total PBIT). PBIT of Others segment rose 4.50% to Rs -71.60 crore (accounting for -3.67% of total PBIT). PBIT of Defence reported profit of Rs 182.46 crore compared to loss of Rs 1.79 crore.
PBIT margin of Forgings segment rose from 10.79% to 13.43%. PBIT margin of Others segment rose from negative 12.83% to negative 8.75%. PBIT margin of Defence segment rose from negative 0.44% to 11.69%. Overall PBIT margin rose from 9.38% to 12.14%.
Operating profit margin has jumped from 13.69% to 16.31%, leading to 44.72% rise in operating profit to Rs 2,557.94 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.02% to 45.51%. Purchase of finished goods cost rose from 1.26% to 1.56%. Other expenses fell from 27.45% to 24.77%.Other income rose 31.56% to Rs 227.42 crore. PBIDT rose 43.55% to Rs 2785.36 crore. Provision for interest rose 64.48% to Rs 491.17 crore. Loan funds rose to Rs 7,947.53 crore as of 31 March 2024 from Rs 7,313.24 crore as of 31 March 2023. Inventories rose to Rs 3,216.08 crore as of 31 March 2024 from Rs 3,126.25 crore as of 31 March 2023. Sundry debtors were higher at Rs 3,167.15 crore as of 31 March 2024 compared to Rs 3,087.46 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,689.92 crore as of 31 March 2024 from Rs 1,039.52 crore as of 31 March 2023. Investments declined from Rs 2,568.82 crore as of 31 March 2023 to Rs 1,848.98 crore as of 31 March 2024.
PBDT rose 39.74% to Rs 2294.19 crore. Provision for depreciation rose 15.31% to Rs 848.2 crore. Fixed assets increased to Rs 7,004.64 crore as of 31 March 2024 from Rs 6,566.60 crore as of 31 March 2023. Intangible assets increased from Rs 295.47 crore to Rs 295.99 crore.
Profit before tax grew 59.57% to Rs 1,445.99 crore. Extraordinary items were increased to Rs -12.32 crore. Provision for tax was expense of Rs 528.83 crore, compared to Rs 318.56 crore. Effective tax rate was 36.75% compared to 38.52%.
Minority interest decreased 105.06% to Rs -40.97 crore. Net profit attributable to owners of the company increased 80.02% to Rs 951.13 crore.
Equity capital stood at Rs 93.13 crore as of 31 March 2024 to Rs 93.13 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00.
Promoters' stake was 45.25% as of 31 March 2024 ,compared to 45.25% as of 31 March 2023 .
Cash flow from operating activities increased to Rs 1,664.40 crore for year ended March 2024 from Rs 1,294.47 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 1,524.03 crore, compared to Rs 996.18 crore during the year ended March 2023.
Other Highlights
During the quarter ended December 31, 2024, the company issued 12,500,000 equity shares with a face value of Rs 2 each through a Qualified Institutional Placement (QIP) at an issue price of Rs 1320 per share (including a securities premium of Rs1318 per share), totaling Rs 1650 crore. This has resulted in an increase in equity share capital from Rs 93.127 crore in Q2 FY25 to Rs 95.627 crore in Q3 FY25. In Q3 FY25, America contributed 74% to revenue, Europe 20%, and Asia 6%.Management Comments :
B.N. Kalyani, Chairman & Managing Director said: 'The company reported a consolidated revenue of Rs 3,476 Crore and EBITDA of Rs 638 Crore, a de-growth of 10% and 5% respectively. The primary factor for decline in performance is the anaemic economic condition in EU which impacted the performance of the European operations and exports into Europe. The lumpy nature of the defence business also impacted the performance of the company in the quarter. Bharat Forge group secured new orders worth Rs 830 Crores across various business verticals in Q3FY25. BFL group's defence business posted revenue of Rs 337 Crore in Q3. With order wins of Rs 97 Crores in Q3, the executable order book as of December 31st stands at Rs 5,706 Crores. For the Aerospace business, we have approved an investment for setting up a dedicated state of the art machining line for landing gears 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. JS Auto continued registering strong performance during the quarter with revenue growing by 20% to Rs 166 Crore and EBITDA growth of 24% at Rs 23 Crores as compared to Q3 FY24. During 9M FY25, JSA won orders worth Rs 183 crores benefiting from the positive momentum built around Indian manufacturing. We expect this business to surpass the Rs 1,000 Crs revenue milestone in the next 2-3 years. Looking ahead into Q4 FY25 & FY26, we expect 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 our manufacturing footprint of our overseas business with an endeavor to achieve operational stability in this challenging environment.'
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