Bharat Forge Ltd (BFL) has posted a net profit of Rs 97.4 crore during the first quarter of FY 12, recording a growth of 64 per cent year-on-year on the back of de-risking its business and higher exports. Income from operations has grown 37 per cent to Rs 858 crore. EBITDA margin for the quarter was maintained at 25.6 per cent.
At the 50th AGM of the company held here today, BFL declared a dividend of 175 per cent, amounting to Rs 3.50 per equity share with a face value of Rs 2.
On a standalone basis, the company’s Q1 performance improved on account of increased focus on the non-auto segment as well as 67 per cent growth in exports. Overseas sales at Rs 381 crore, contributed to nearly 45 per cent to the top line. Domestic revenues grew 18.6 per cent to Rs 476.6 crore.
‘All-round performance'
Mr Baba Kalyani, Chairman & Managing Director, said: “This quarter results show strong all-round performance across geographies and industries and it clearly accentuate the benefits derived from the de-risked business model we have put in place.”
The non-automotive business has grown by more than 50 per cent compared to last year and continues to witness traction with good order flow. This year the company expects to earn 37 per cent of its revenue from this business that is essentially operational in the domestic market.
Earlier, speaking the AGM, Mr Kalyani said that the manufacturing facilities at Pune and Baramati were meeting customer needs in segments of the capital goods industry, while the wholly owned subsidiary set up to carry out the EPC business had secured business for the 150-MW power plants valued at Rs 1,885 crore. The process of setting up manufacturing plants at Mundra and Solapur for its joint ventures with Alstom and NTPC, respectively was underway.
Overseas business
The overseas operations have continued to post good numbers on the back of strong auto demand. Income from Bharat Forge’s wholly owned subsidiaries and the joint venture in China stood at Rs 711 crore, a rise of 38.1% year-on-year.
During the last fiscal, BFL’s joint venture company in China FAW Bharat Forge (Changchun) Co Ltd saw a turnaround due to strict cost control, market penetration and productivity improvements. The company’s top line grew 82 per cent and it returned a pre-tax profit of Rs 16.8 crore against a loss in the previous year.