Bharat Forge in News: After Bharat Forge reported a 59.3 percent year-over-year increase in net profit for Q4FY24 at Rs 389.6 crore, the company’s shares shot up over 15 percent to a new 52-week high of Rs 1,474.4 on May 8. On the NSE, the stock closed at Rs 1,438. The stock price appeared to have increased in response to the management’s optimistic remarks about future profitability. With a closing price of Rs 1,438.
“Overall, we anticipate that FY25 will be a year of growth propelled by the defense industry, industrial casting, and ongoing enhancements in the capacity utilization of the international business. Bharat Forge Chairman and Managing Director Baba Kalyani said in a statement that “strong growth in profitability in FY25 should result from the turnaround of the overseas business coupled with margin improvement in other business verticals.”
Driving factor in the growth of Bharat Forge
Additionally, a significant factor in the company’s excellent fiscal fourth quarter earnings was its defense division. “A key driver of the strong performance was the fulfilment of defence export orders won by KSSL (Kalyani Strategic Systems Limited) and the continued strong ramp-up of exports business across all business segments except Oil & Gas,” the business stated in a filing with the exchange.
During an interview with CNBC-TV18, Kalyani stated that they anticipate growth of between 50 and 60 percent in FY2025. According to the Kalyani, the company has won over $500 million in defense contracts in the last three months.
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Bharat Forge declared a net profit of Rs 244.5 crore for Q3FY23. Bharat Forge’s overall sales increased 16.6% in the fourth quarter to Rs 2,328.5 crore from Rs 1,997.3 crore the previous year. Earnings before interest, taxes, depreciation, and amortization, or EBITDA, was Rs 659 crore in Q4FY24 compared to Rs 522.8 crore in the previous fiscal year.
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The stock of Bharat Forge has increased by more than 57% in the past year.
Bharat Forge, a Pune-based company, offers parts and solutions to a number of industries, including the automotive, railroad, defense, mining, construction, aerospace, marine, and oil & gas sectors.