Hindustan Times ST (Jaipur)
BHARAT FORGE REPORTS Q4 NET PROFIT OF ₹212.12 CRORE
NEW DELHI: Auto components major Bharat Forge on Friday reported a consolidated net profit of ₹212.12 crore in the fourth quarter ended March 31 riding on robust sales.
The company had posted a consolidated net loss of ₹68.59 crore in the same quarter previous fiscal, Bharat Forge Ltd (BFL) said in a regulatory filing.
Consolidated revenue from operations during the period under review stood at ₹2,082.85 crore as against ₹1,741.92 crore in the year-ago quarter.
For the fiscal ended March 31, 2021, the company posted a consolidated net loss of ₹126.97 crore. It had posted a consolidated net profit of ₹349.25 crore in the previous fiscal, BFL added.
Consolidated revenue from operations in 2020-21 stood at ₹6,336.26 crore as against ₹8,055.84 crore in 2019-20, the company said.
BFL Chairman and Managing Director BN Kalyani said, “The year has ended on a strong note with sharp recovery visible in all our end markets. Q4 FY21 has witnessed a 26.2% growth in sales on back of 43% growth in exports, which is now witnessing growth in all key segments.” In an earnings presentation, the company said, in the domestic automotive sector “the spate of changes in regulations coupled with deteriorating fundamentals of the underlying economy led to torrid times for the industry...
“Enhancement of safety norms, increase of axle load norms, GST, emission norms change from BS-IV to BS-VI within a short span of time resulting in increased total cost of ownership were some of the headwinds the industry has had to encounter.” The declining trend in underlying demand was underway even before the Covid-19 pandemic. Over the period FY18 to FY21, production volumes for medium and heavy commercial vehicles (M&HCV), and passenger vehicles segment have declined by 47% and 24%, respectively, it added.
It, however, said, “Although the near term outlook is negative due to the lockdown to curb the second wave of Covid-19, the medium to long term outlook is very encouraging especially for the M&HCV sector.”