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Bharat Forges Q3 net soars 98% to Rs 94 crore

Bharat Forge Ltd today reported 97.9 per cent jump in net profit to Rs 94 crore in the quarter ended December 31, 2013.

The company had reported a net profit of Rs 47.5 crore in the same period of previous fiscal.

Total revenue jumped 23.7 per cent to Rs 832.1 crore in the quarter under review as against Rs 672.6 crore in the year-ago period on the back of 54.5 per cent increase in export revenues, a company statement said here.

"BFL continues to do well despite the domestic slowdown because of a diversified product mix and strategic entry into the non-automotive sectors in 2008. We continue to win new orders across auto & non-auto segments," the company's chairman & managing director B N Kalyani said.

Sales developed in line with expectations and witnessed a strong improvement over a weak third quarter of previous year.

:The international operations have also registered strong performance driven by cost controls, productivity improvements and innovative new products", Mr Kalyani said.

"Looking ahead, we expect to see demand levels across geographies stabilising with an upward bias. Overall demand is expected to be moderately better in Q4 of FY14 driven by exports & early signs of recovery in India", he added.

The company said its wholly-owned subsidiaries have recorded a strong performance driven by concentrated focus on productivity and cost control.

"While the total income grew by 34.5 per cent, EBITDA grew by 121.8 per cent. EBITDA margins at 8.6 per cent during the quarter expanded by 340 bps. The operations registered PAT of Rs 133 million as against a loss of Rs 56 million in the corresponding period of previous year", the company said in a statement.

Bharat Forge, through its indirect subsidiary in Hong Kong, has divested 51.85 per cent stake in its Chinese JV operations (FAW Bharat Forge (Changchun) Company Limited) to its joint venture partner, China FAW Corporation Limited, for $28.20 million (Rs 175 crore), bringing an end to its 8 year old joint venture in China, the statement added.

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