Q4 Results: See Pick Up In Growth Only In Second Half Of FY20, Bharat Forge’s Baba Kalyani Says
Bharat Stage-VI fuel norms will create a pre-buying situation in the commercial vehicle space, says Baba Kalyani.
Bharat Forge Ltd.’s expects its revenue growth to slowdown in the first half of the financial year 2020, weighed down by volatility in the domestic market and trade tensions overseas, its Chairman and Managing Director Baba Kalyani said.
This comes after the automotive parts maker reported a threefold jump in its fourth-quarter profit.
The overseas business would suffer headwinds through the first half of the year due to uncertainty surrounding tariffs and the U.S.-China trade war, Kalyani told BloombergQuint, adding that he expects inventory corrections to impact its domestic business in the first quarter or beyond.
Overall, we should have a reasonable year -- may be a little more flat year than the kind of growth we have seen in the last two years.Baba Kalyani, CMD, Bharat Forge
Kalyani expects the transition to Bharat Stage-VI fuel norms to create a pre-buying situation in the commercial vehicle space. “Pre-buy would create demand volatility,” he said. “The demand will be skewed in the second quarter, third quarter and part of fourth quarter.”
Bharat Forge, he said, has the capacity in place to cater to the rising demand.
Q4 Earnings Highlights (YoY)
- Net profit spikes 200 percent to Rs 300 crore
- Revenue rises 14 percent to Rs 1,668 crore
- Ebitda jumps 234 percent to Rs 516 crore
- Margin expands to 30.94 percent, from 28.5 percent
- Shipment tonnage declines 4 percent
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