Poised for further growth in Q4; margins around 28-30% sustainable: Bharat Forge

作者:Annabelle    發表日期:2018-09-27 17:31:18

Bharat Forge reported a strong set of Q3 earnings The Company clocked in a 77.4 percent jump in net profit this quarter and EBITDA also came in above street estimates at Rs 416 crore versus rs 260 crore Year on Year (YoY) and the EBITDA margins at 29.9 percent compared to 27.6 percent YoY.

The net profit was Rs 228 crore versus Rs 128 crore YoY.

Amit Kalyani, Executive Director of Bharat Forge is confident of the company doing even better in the fourth quarter. He said they have adequate capacity to absorb the growth.

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They have also debottlenecked some machining operations and increased capacity, he said. The forging utilization level is at about 75 percent and so there is plenty of headroom for growth, said Kalyani.

Amit Kalyani
Amit Kalyani
ED|Bharat Forge

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He said their total industrial business was about Rs 560 crore.

Talking on the outlook, he said as of now it is strong on passenger car, commercial vehicles, including oil and gas, construction and mining.

Talking on margin expansion, he said the target is to remain between 28-30 percent.

For electric vehicles, he said they have been developing products, prototypes for several customers and has also set up an EV component and solution development center in UK.

Bharat Forge set to acquire 40 percent in an EV start-up Tork Motorcycles for Rs30 cr.

The interest for the above acquisition is in working at a solution provider to them, to develop products and solutions, said Kalyani.