Bharat Forge Q4 Net Jumps 138%

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Bharat Forge on Tues­day posted a net profit jump of 138% for the fourth quar­ter, aided by a strong show­ing in the over­seas mar­kets and a one-time sale of real es­tate.

Net profit for Q4FY14 stood at .` 119 crore ver­sus .` 49.9 crore for the same pe­riod last fis­cal year. The net profit for the Q4 in­cluded profit of .` 43.2 crore on sale of land and im­pair­ment charge taken on in­vest­ments in In­dian sub­sidiaries of .` 30.8 crore, which is non-cash in na­ture.

The rev­enues were up 38% for the quar­ter un­der re­view at .` 931 crore as against .` 675 crore sales posted by the com­pany in Q4 of FY13. For the full fis­cal year, the net profit jumped 30.7% to .` 400 crore and the rev­enues were higher by 8% to .` 3,399 crore

Re­view­ing the full fis­cal years per­for­mance, Baba Kalyani, CMD of Bharat Forge said, “The un­cer­tain de­mand en­vi­ron­ment which pre­vailed dur­ing FY14 is be­gin­ning to change pos­i­tively es­pe­cially in the ex­ter­nal mar­kets. We ex­pect both North Amer­ica & Europe to grow in FY15. The do­mes­tic mar­ket might wit­ness de­mand re­cov­ery in 2H FY15.” In Q4 of FY14, the over­all do­mes­tic au­to­mo­tive pro­duc­tion posted a dou­ble digit de­cline of 10.3% to 9.82 lakh units led by over 20% de­cline in the commercial ve­hi­cle space, which is Bharat Forge’s strong stay, yet the com­pany posted a growth of 16.3% led by non-au­to­mo­tive seg­ment. The over­seas rev­enues in the Q4 jumped 63% year-onyear led by over 30% growth in Europe and 80% growth in North Amer­ica, thereby tak­ing the over­seas con­tri­bu­tion to over 55% of its over­all busi­ness. Kalyani said BFL’s per­for­mance in FY14 has been en­cour­ag­ing with ro­bust op­er­at­ing lever­age and cash flows de­spite sub-op­ti­mal util­i­sa­tion lev­els in In­dia caused by sig­nif­i­cant weak­ness in the CV seg­ment.

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