Bharat Forge Q4 Review - Robust Margin Performance, Improved Revenue Visibility: Systematix
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Systematix Research Report
Bharat Forge Ltd.’s Q4 FY21 Ebitda margin at 25.5% (at 65% utilisation) was 100 basis points/200 basis points ahead of our/consensus estimates as exports increased sharply.
Consequently, net sales revenue at Rs 234/kilogram was ahead of estimates.
Overseas subsidiaries reported best-ever operating margins of 10.8%, up 170 basis points QoQ.
On the earnings call, the management highlighted that the export segment is seeing strong traction along with a recovery in the oil and gas segment.
The heavy truck market in Europe and America has seen swift recovery and order volumes remain robust.
While the near term order outlook for the domestic commercial vehicle segment remains weak, the company expects a sharp recovery in H2 FY22.
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