INSUBCONTINENT EXCLUSIVE:
Shares of auto components maker - Bharat Forge - rose as much as 7.63 per cent to hit record high of Rs 749 after it reported March quarter
The Pune-based auto parts maker reported consolidated net profit of Rs 212 crore compared with loss of Rs 68.59 crore in the same quarter
last year and loss of Rs 210 crore in December quarter
Its revenue from operations rose 20 per cent to Rs 2,082.84 crore from Rs 1,741.92 crore in the same period a year ago.The global automotive
industry has picked up smartly post the Covid-19 lockdown and all segment have witnessed sharp rebound across geographies
The company's main addressable segment, Class 8 Heavy trucks in North America and 16T - above Heavy Duty Trucks in Europe have seen sharp
Demand outlook provided by the OEM's is quite robust going ahead, Bharat Forge in an earnings release.Enhancement of safety norms,
increase of axle load norms, GST, emission norms change from BS IV to BS VI within a short span of time resulting in increased Total Cost of
Ownership were some of the headwinds the industry has had to encounter
The declining trend in underlying demand was underway even before the Covid 19 pandemic
Over the period FY18 to FY21, production volumes for MHCV - PV segment has declined by 47 per cent and 24 per cent respectively, Bharat
Forge added."The year has ended on a strong note with sharp recovery visible in all our end markets
Q4 FY21 has witnessed a 26.2% growth in sales on back of 43% growth in exports, which is now witnessing growth in all key segments
Despite cost inflationary pressures, EBITDA has increased by 310 bps," B.N
Kalyani, Chairman - Managing Director of the company said in a statement.As of 2:00 pm, Bharat Forge shares traded 4.5 per cent higher at Rs
727 outperforming the Sensex which was down 0.3 per cent.
