Bharat Forge Expects Exports To Continue Outpacing Domestic Sales
Bharat Forge’s operating margin to remain within 20-30 percent range even as pricing pressures persist.
Auto components major Bharat Forge Ltd. posted a jump in its third quarter financials on the back of strong growth in domestic and export business.
Net profit jumped 77.4 percent to Rs 228 crore from the year-ago period, despite rising commodity prices, manufacturing costs and rupee appreciation, the company said in an exchange filing today.
“Pricing pressures are a pass through,” said Amit Kalyani, executive director of the company, in an interaction with BloombergQuint. As of date, the company’s export revenue are 30-40 percent higher than its domestic revenue, and the trend is likely to continue going ahead, added Kalyani. Export market revenue growth stood at 61 percent last month.
Revenue grew 47.4 percent to Rs 1,390.5 crore as the company has expanded capacity and increased productivity across segments.
Operating profit rose 59.7 percent to Rs 416 crore, while the margin expanded 230 basis points to 29.9 percent. Kalyani said margins are likely to remain within 20-30 percent band, even as pricing pressures persist.
The company has secured new orders worth $60 million in the November-January period and bulk of the order wins are in the passenger vehicles and industrial application segments.