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For
the quarter ending March 2024, consolidated net sales (including other operating income) of Bharat Forge has increased 14.75% to Rs 4164.21 crore compared to quarter ended March 2023. Sales of Forgings segment rose 4.31% to Rs 3,464.68 crore (accounting for 81.18% of total sales). Sales of Others segment has gone up 19.16% to Rs 242.72 crore (accounting for 5.69% of total sales). Sales of Defence segment has gone up 331.09% to Rs 560.69 crore (accounting for 13.14% of total sales). Inter-segment sales rose Rs 4.21 crore to Rs 103.88 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 77.72% to Rs 484.07 crore. PBIT of Forgings segment rose 59.41% to Rs 451.97 crore (accounting for 93.37% of total PBIT). PBIT of Others segment fell 131.40% to Rs -29.68 crore (accounting for -6.13% of total PBIT). PBIT of Defence segment rose 3,598.98% to Rs 61.77 crore (accounting for 12.76% of total PBIT). PBIT margin of Forgings segment rose from 8.54% to 13.05%. PBIT margin of Others segment fell from negative 6.30% to negative 12.23%. PBIT margin of Defence segment rose from 1.28% to 11.02%. Overall PBIT margin rose from 7.45% to 11.34%. Operating profit margin has jumped from 12.08% to 15.45%, leading to 46.71% rise in operating profit to Rs 643.28 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.11% to 48.98%. Purchase of finished goods cost rose from 1.81% to 2.73%. Employee cost increased from 11.43% to 11.56%. Other expenses fell from 27.72% to 26.52%. Other income fell 5.14% to Rs 54.83 crore. PBIDT rose 40.67% to Rs 698.11 crore. Provision for interest rose 18.74% to Rs 115.52 crore. Loan funds rose to Rs 7,947.53 crore as of 31 March 2024 from Rs 7,313.24 crore as of 31 March 2023. Inventories rose to Rs 3,216.08 crore as of 31 March 2024 from Rs 3,126.25 crore as of 31 March 2023. Sundry debtors were higher at Rs 3,167.15 crore as of 31 March 2024 compared to Rs 3,087.46 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,689.92 crore as of 31 March 2024 from Rs 1,039.52 crore as of 31 March 2023. Investments declined from Rs 2,568.82 crore as of 31 March 2023 to Rs 1,848.98 crore as of 31 March 2024. PBDT rose 46.02% to Rs 582.59 crore. Provision for depreciation rose 14.34% to Rs 207.11 crore. Fixed assets increased to Rs 7,004.64 crore as of 31 March 2024 from Rs 6,566.60 crore as of 31 March 2023. Intangible assets increased from Rs 295.47 crore to Rs 295.99 crore. Profit before tax grew 72.37% to Rs 375.48 crore. Extraordinary items were increased to Rs -10.23 crore. Provision for tax was expense of Rs 138.7 crore, compared to Rs 49.03 crore. Effective tax rate was 37.92% compared to 27.74%. Minority interest decreased 13.92% to Rs -8.84 crore. Net profit attributable to owners of the company increased 74.13% to Rs 235.95 crore. Equity capital stood at Rs 93.13 crore as of 31 March 2024 to Rs 93.13 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00. Promoters’ stake was 45.25% as of 31 March 2024 ,compared to 45.25% as of 31 March 2023 .
Full year results analysis.
Net sales (including other operating income) of Bharat Forge has increased 21.47% to Rs 15682.07 crore. Sales of Forgings segment rose 14.19% to Rs 13,717.90 crore (accounting for 85.22% of total sales). Sales of Others segment has gone up 40.03% to Rs 818.34 crore (accounting for 5.08% of total sales). Sales of Defence segment has gone up 280.34% to Rs 1,560.55 crore (accounting for 9.69% of total sales). Inter-segment sales rose Rs 20.27 crore to Rs 414.72 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 59.12% to Rs 1,941.15 crore. PBIT of Forgings segment rose 41.94% to Rs 1,840.52 crore (accounting for 94.82% of total PBIT). PBIT of Others segment fell 9.13% to Rs -81.83 crore (accounting for -4.22% of total PBIT). PBIT of Defence reported profit of Rs 182.46 crore compared to loss of Rs 1.79 crore. PBIT margin of Forgings segment rose from 10.79% to 13.42%. PBIT margin of Others segment rose from negative 12.83% to negative 10.00%. PBIT margin of Defence segment rose from negative 0.44% to 11.69%. Overall PBIT margin rose from 9.38% to 12.06%. Operating profit margin has jumped from 13.69% to 16.31%, leading to 44.72% rise in operating profit to Rs 2,557.94 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.02% to 45.51%. Purchase of finished goods cost rose from 1.26% to 1.56%. Other expenses fell from 27.45% to 24.77%. Other income rose 31.56% to Rs 227.42 crore. PBIDT rose 43.55% to Rs 2785.36 crore. Provision for interest rose 64.48% to Rs 491.17 crore. Loan funds rose to Rs 7,947.53 crore as of 31 March 2024 from Rs 7,313.24 crore as of 31 March 2023. Inventories rose to Rs 3,216.08 crore as of 31 March 2024 from Rs 3,126.25 crore as of 31 March 2023. Sundry debtors were higher at Rs 3,167.15 crore as of 31 March 2024 compared to Rs 3,087.46 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,689.92 crore as of 31 March 2024 from Rs 1,039.52 crore as of 31 March 2023. Investments declined from Rs 2,568.82 crore as of 31 March 2023 to Rs 1,848.98 crore as of 31 March 2024. PBDT rose 39.74% to Rs 2294.19 crore. Provision for depreciation rose 15.31% to Rs 848.2 crore. Fixed assets increased to Rs 7,004.64 crore as of 31 March 2024 from Rs 6,566.60 crore as of 31 March 2023. Intangible assets increased from Rs 295.47 crore to Rs 295.99 crore. Profit before tax grew 59.57% to Rs 1,445.99 crore. Extraordinary items were increased to Rs -12.32 crore. Provision for tax was expense of Rs 528.83 crore, compared to Rs 318.56 crore. Effective tax rate was 36.75% compared to 38.52%. Minority interest decreased 105.06% to Rs -40.97 crore. Net profit attributable to owners of the company increased 80.02% to Rs 951.13 crore. Equity capital stood at Rs 93.13 crore as of 31 March 2024 to Rs 93.13 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00. Promoters’ stake was 45.25% as of 31 March 2024 ,compared to 45.25% as of 31 March 2023 . Cash flow from operating activities increased to Rs 1,664.40 crore for year ended March 2024 from Rs 1,294.47 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 1,524.03 crore, compared to Rs 996.18 crore during the year ended March 2023. Other Highlights
Board
recommended a final dividend of Rs 6.50 per equity share of the face value of
Rs 2 each (at the rate of 325%) for the financial year ended March 31, 2024. The
final dividend, if approved, will be paid on or after August 14, 2024.
In
Q4 FY24, America contributed 63% to total revenue, Europe 30% and Asia 7%.
Management Comments :
B.N.
Kalyani, Chairman & Managing Director said: “The company ended the year
on a strong note with topline growing by 16.6% to Rs 2,329 Crores while EBITDA
grew by 25.1% to Rs 654 Crores resulting in EBITDA margins of 28.1% in Q4 FY24.
For the full year, topline grew by 18.4% to Rs 8,969 Crores and EBITDA grew by
28.0% to Rs 2,469 Crores. A key driver of the strong performance was the
fulfilment of defence export orders won by KSSL and the continued strong
ramp-up of exports business across all business segments except Oil & Gas.
The balance sheet continues to remain robust, with cash (Net of LTL) of Rs 815
Crores and sharp improvement in all key parameters. At a consolidated level,
topline grew by 21.5% to Rs 15,682 Crores and EBITDA grew by 44.4% to Rs 2,566
Crores. In FY24, the Indian operations have secured new orders worth Rs 1,350
Crores across automotive & industrial applications. This includes a healthy
mix of existing and new customers across traditional & new products. BFL
group’s defence business recorded revenues of Rs 1,561 Crores, a near 4X jump
as compared to FY23. The company secured new orders worth Rs 4,494 Crores
across Artillery systems, Armored vehicles and consumables. The executable
order book stands at Rs 5,192 Crores as of March 31, 2024. In FY24, the
industrial casting vertical recorded a strong performance with topline growing
by 28%, EBITDA growth of 57% and PBT doubling compared to FY23. The company has
secured new orders worth Rs 460 Crores in FY 24. Over the past 2 years, the
business has made tremendous progress in reducing its customer and sector
concentration and has developed a more balanced business mix across Automotive,
Construction & Mining, Hydraulics & Wind energy. We have set up a
AI/Digital manufacturing center which will catalyze the engineering/
manufacturing activities and enable improvement in productivity and shorten
time to market products. At a consolidated level, we expect FY25 to be a year
of growth driven by Defence business, Industrial casting business and continued
improvement in capacity utilization of the overseas business. The turnaround of
the overseas business coupled with margin improvement in other business
verticals should result in strong growth in profitability in FY25.”
| Bharat Forge : Consolidated Results | | | Quarter ended | Year ended |
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| Particulars | 202403 | 202303 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 4,164.21 | 3,629.05 | 14.75 | 15,682.07 | 12,910.26 | 21.47 | | OPM (%) | 15.45 | 12.08 | 337 bps | 16.31 | 13.69 | 262 bps | | OP | 643.28 | 438.46 | 46.71 | 2,557.94 | 1,767.52 | 44.72 | | Other Inc. | 54.83 | 57.80 | -5.14 | 227.42 | 172.86 | 31.56 | | PBIDT | 698.11 | 496.26 | 40.67 | 2,785.36 | 1,940.38 | 43.55 | | Interest | 115.52 | 97.29 | 18.74 | 491.17 | 298.62 | 64.48 | | PBDT | 582.59 | 398.97 | 46.02 | 2,294.19 | 1,641.76 | 39.74 | | Depreciation | 207.11 | 181.14 | 14.34 | 848.2 | 735.59 | 15.31 | | PBT | 375.48 | 217.83 | 72.37 | 1445.99 | 906.17 | 59.57 | | Share of Profit/(Loss) from Associates | 0.56 | -0.5 | LP | 5.32 | -33.44 | LP | | PBT before EO | 376.04 | 217.33 | 73.03 | 1451.31 | 872.73 | 66.30 | | EO Income | -10.23 | -40.56 | 74.78 | -12.32 | -45.79 | 73.09 | | PBT after EO | 365.81 | 176.77 | 106.94 | 1438.99 | 826.94 | 74.01 | | Taxation | 138.7 | 49.03 | 182.89 | 528.83 | 318.56 | 66.01 | | PAT | 227.11 | 127.74 | 77.79 | 910.16 | 508.38 | 79.03 | | Minority Interest (MI) | -8.84 | -7.76 | -13.92 | -40.97 | -19.98 | -105.06 | | Net profit | 235.95 | 135.5 | 74.13 | 951.13 | 528.36 | 80.02 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 235.95 | 135.5 | 74.13 | 951.13 | 528.36 | 80.02 | | EPS (Rs)* | 5.21 | 3.58 | 45.57 | 20.60 | 11.99 | 71.83 | | | * EPS is on current equity of Rs 93.12 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Bharat Forge : Consolidated Segment Results | | | Quarter ended | Year ended |
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| % of (Total) | 202403 | 202303 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
|---|
| Sales | | Steel Forging | 0.00 | 0.00 | 0.00 | - | | General Engineering Trading etc | 0.00 | 0.00 | 0.00 | - | | Forgings | 81.18 | 3,464.68 | 3,321.45 | 4.31 | 85.22 | 13,717.90 | 12,013.40 | 14.19 | | Projects (Capital Goods) | 0.00 | 0.00 | 0.00 | - | | Others | 5.69 | 242.72 | 203.69 | 19.16 | 5.08 | 818.34 | 584.39 | 40.03 | | Defence | 13.14 | 560.69 | 130.06 | 331.09 | 9.69 | 1,560.55 | 410.30 | 280.34 | | Total Reported Sales | 100.00 | 4,268.09 | 3,655.20 | 16.77 | 100.00 | 16,096.79 | 13,008.09 | 23.74 | | Less: Inter segment revenues | | 103.88 | 4.21 | 2,366.87 | | 414.72 | 20.27 | 1,945.87 | | Net Sales | 100.00 | 4,164.21 | 3,650.99 | 14.06 | 100.00 | 15,682.07 | 12,987.82 | 20.74 | | PBIT | | Steel Forging | 0.00 | 0.00 | 0.00 | - | | General Engineering Trading etc | 0.00 | 0.00 | 0.00 | - | | Forgings | 93.37 | 451.97 | 283.53 | 59.41 | 94.82 | 1,840.52 | 1,296.70 | 41.94 | | Projects (Capital Goods) | 0.00 | 0.00 | 0.00 | - | | Others | -6.13 | -29.68 | -12.83 | -131.40 | -4.22 | -81.83 | -74.98 | -9.13 | | Defence | 12.76 | 61.77 | 1.67 | 3,598.98 | 9.40 | 182.46 | -1.79 | LP | | Total PBIT | 100.00 | 484.07 | 272.37 | 77.72 | 100.00 | 1,941.15 | 1,219.93 | 59.12 | | Less : Interest | | 115.52 | 97.29 | 18.74 | | 491.17 | 298.62 | 64.48 | | Add: Other un-allcoable | | -2.73 | 1.69 | PL | | -11.00 | -94.37 | 88.35 | | PBIT Margin(%) | | Steel Forging | | 0.00 | 0.00 | 0.00 | | General Engineering Trading etc | | 0.00 | 0.00 | 0.00 | | Forgings | | 13.05 | 8.54 | 450.88 | | 13.42 | 10.79 | 262.31 | | Projects (Capital Goods) | | 0.00 | 0.00 | 0.00 | | Others | | -12.23 | -6.30 | -593.07 | | -10.00 | -12.83 | 283.11 | | Defence | | 11.02 | 1.28 | 973.34 | | 11.69 | -0.44 | 1,212.83 | | PBT | 100.00 | 365.82 | 176.78 | 106.94 | 100.00 | 1,438.99 | 826.95 | 74.01 |
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