Bharat Forge Expects Higher Exports Aided By Strong U.S. Demand In 2019
Bharat Forge Ltd. expects its shipment tonnage numbers to improve in 2019 due to strong demand in the North American market.
“This is going to be the strongest year for North American trucks,” said it’s Chairman and Managing Director Baba Kalyani in an interview with BloombergQuint. “There is a misconception in the system when those ACT Research’s order intake numbers get announced every month. Order intake is a different phenomenon from the production and sales of trucks.”
Preliminary order data for North America Class 8 trucks released by ACT Research last month show sales of 27,900 units of multi-axle 15-tonne rigs in November. That’s a 36 percent drop over the previous month and 15 percent lower than a year earlier.
If at all there is a worry, it is a temporary worry in the domestic truck market due to inventory build up in the last two to three months. However, it is slowly receding now.Baba Kalyani, chairman and managing director, Bharat Forge
There was an order backlog of around 400,000 trucks already and demand for another 300,000-350,000 units for the current year in the American markets, said Kalyani.
Key Highlights: (YoY)
- Revenue rose 21.7 percent to Rs 1,692.5 crore.
- Net profit rose 35.8 percent to Rs 309.8 crore.
- Ebitda rose 26.3 percent to Rs 525.8 crore.
- Operating margin at 31.1 percent versus 29.9 percent.
Watch the full interview here: