Bharat Forge Q4 Net Jumps 138%
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.