Bharat Forge ’s second quarter net profit accelerated 56% from a year ago to Rs 106.40 crore, helped by surge in exports and strong performance of non automotive business, which offset a slowdown in the domestic auto sector.
The forging company’s total income from operations in July-September was up 27% year-on-year at Rs 910 crore.
Exports during the quarter were up 58% at Rs 431.6 crore, Bharat Forge said on Wednesday. Domestic revenue, in contrast, was up just 8% from a year ago at Rs 478.4 crore.
"The derisked business model is facilitating the continuation of the company’s growth trajectory during the year with impressive growth of exports & non auto, notwithstanding the slowdown in the Indian automotive sector," said chairman and managing director BN Kalyani.
After accelerating 30% in 2010-11, automobile sales in India have slowed down sharply due to expensive loans and several rounds of fuel price hikes. Bharat Forge has been increasing its focus on the non automotive sector to diversify and shield itself from this slowdown.
Kalyani said the non automotive business witnessed "tremendous traction" with good order flow in the second quarter, and it now accounts for 40% of the standalone business.
Bharat Forge said its overseas operations saw "stable performance" in the quarter, with a 23% growth in revenue at Rs 649.3 crore. The company reported second quarter profit before tax of Rs 4 crore in overseas operations, compared with a loss of Rs 1.7 crore in the year ago quarter.
EBITDA margins in Bharat Forge’s international operations were up 170 bps to 5.9% in July-September.
Bharat Forge shares were trading flat at Rs 290.40 on NSE in afternoon trade.
Source: www.moneycontrol.com
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