Dolat Capital: Bharat Forge Posts A Weak Q2; Improving Prospects  
Bharat Forge Ltd. Machining Facility (Image: Company website)

Dolat Capital: Bharat Forge Posts A Weak Q2; Improving Prospects  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Bharat Forge Ltd.’s reported Q2 numbers below estimates dragged by sharp fall in export revenue (down 40% YoY, weak revenue from oil and gas and class eight truck segment).

Standalone revenues declined 30% YoY to Rs 8.8 billion while Ebitda margin stood at 17.8% (down 766 basis points YoY) due to negative operating leverage and weaker product mix.

Oil and gas being a major contributor (approximately 25% of non-auto business) to the company’s revenue dented the company’s non-auto business.

The aerospace sector is also under stress and facing severe headwinds.

Click on the attachment to read the full report:

Dolat Capital Bharat Forge Q2FY21 Result Update.pdf

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