Bharat Forge share zooms 9% after firm logs Rs 205.4 crore profit in Q4

Share of Bharat Forge rose 9 per cent to hit a 52-week high of Rs 758.35 on BSE after the company reported a strong set of numbers for the quarter ended March 2021.

The company reported a net profit of Rs 205.4 crore for the quarter ended March 2021 against a loss of Rs 73.3 crore in a year-ago period.

The stock opened 1 per cent higher at Rs 702.90 against the previous close of Rs 695.85. Market cap of the firm rose to Rs 35,012.66 crore.

It has gained 120.5 per cent in the last 12 months and risen 43 per cent since the beginning of this year.

Share of Bharat Forge stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.

For FY21, total income stood at Rs 3791.9 crore compared to Rs 4724.7 crore in the previous year. The company posted a 52 per cent decline in profit to Rs 312 crore compared to Rs 473.5 crore in the previous year.

In Q4 FY21, total revenues grew 26.2 per cent on back of a strong 42.9 per cent growth in export revenues and 9.6 per cent growth in domestic revenues.

"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 the back of 43% growth in exports, which is now witnessing growth in all key segments. Despite cost inflationary pressures, EBITDA% has increased by 310 bps," said B.N. Kalyani, Chairman & Managing Director.

"During the quarter, we have been declared as the successful bidder for Sanghvi Forgings based in Vadodara. This enhances our footprint in India and builds upon our industrial product manufacturing capabilities," he said in a press release.

"We recently secured an order from the Government of India for development and supply of components/products and the same shall be executed by end of September 2021," he added.

"Demand outlook provided by the OEM's is quite robust going ahead. There are certain uncertainties which could hamper the progress of the industry including the shortage of ships, container shortage and a sharp increase in commodity prices," the company said.

"With the recovery in global business activity and crude prices, we are also witnessing a revival in demand and expect a good pickup in ordering from our customers," it added.

Bharat Forge has 4 manufacturing locations in Maharashtra, Mundhwa, and 3 other facilities in defined Industrial zones.