Conference Call with Bharat Forge Ltd. Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Industrial Products company Bharat Forge announced Q1FY25 results: Standalone: Revenues at Rs 23,381 million in Q1FY25 grew by 10% YoY driven by 26% growth in domestic business. Domestic revenues were higher as execution of defence orders picked up. EBITDA margin at 28.1% in Q1 FY25 was up 210 bps vs Q1FY24 due to pick up in Defence and growth in Oil & Gas. Superior operational performance drove PBT before Exchange gain/ (loss) to Rs 5,222 million in Q1 FY25. Consolidated: Revenues have increased by 6% on a YoY basis driven by contribution from all businesses. EBITDA margins have improved by 260 bps YoY driven by improvement in capacity utilization. EBITDA has increased by 23% PBT has increased by 30% on a YoY basis driven by improvement in performance in KSSL. B.N. Kalyani, Chairman & Managing Director of the firm commented: “On a consolidated basis, Revenues grew by 5.9% to Rs 4,106 crore while EBITDA grew by 22.8% to Rs 760 crore and PBT increased by 30.6% to Rs 470 crore. Our standalone revenue from operations rose by 10% YoY to Rs 2,338 crore. EBITDA grew 19% YoY resulting in EBITDA margin of 28.1%. Steady execution of the Defence export orders and recovery in the Oil & Gas business sustained the operating performance. The group secured new orders worth Rs 980 crore across Defence, Ferrous & Aluminum castings and the core forging business. BFL group’s defence business posted revenue of Rs 642 crore in Q1 registering a jump of 147% YoY. With order wins of Rs 775 crore, the executable order book as of June 30th stands at Rs 5,400 crore, with a mix of Artillery Guns, vehicles and consumables. JS Auto continued to witness strong momentum and during the quarter recorded revenue of Rs 159 Crore and EBITDA at Rs 22 crore and PBT of Rs 10 crore, growth of 26%, 48% and 89% respectively vs Q1 FY24. As the company embarks on various productivity and cost improvement measures, we expect the operating profitability amply supported by organic sales growth to improve over the next 24 – 36 months. The Overseas operations recorded sales of Rs 1,320 crore and EBITDA of Rs 13 crore. The weak CV demand in Europe was a spoiler in an otherwise stable quarter for the overseas operations. Looking ahead into Q2 FY25, we expect continued positive momentum in the Indian entities across Forging, castings & Defence and for the overseas operations, we reiterate our expectation that these businesses will see an improvement in operational parameters resulting in reduction of losses in FY25.” Result PDF