Bharat Forge Sees 18% Dip in Net Profit, Looks to Raise Rs 2,000 Crore

Bharat Forge reported an 18% decline in its consolidated net profit to Rs 175 crore for the June 2024 quarter. The company plans to raise up to Rs 2,000 crore by issuing securities. Despite a weak CV demand in Europe, the firm expects an improvement in operational parameters for overseas operations in the next quarters.

Bharat Forge announced on Thursday that its consolidated net profit dropped by 18% to Rs 175 crore in the June 2024 quarter. This is a decrease from the Rs 214 crore net profit reported during the same period last fiscal year.

The company's total income during the quarter stood at Rs 4,158 crore, compared to Rs 3,941 crore in the year-ago period, according to a regulatory filing. Bharat Forge's board has also approved plans to raise up to Rs 2,000 crore by issuing securities to fuel future growth.

BN Kalyani, the Chairman and Managing Director of Bharat Forge, attributed the sustained operating performance to steady execution of defence export orders and recovery in the Oil & Gas business. The group secured new orders worth Rs 980 crore in various sectors including defence, ferrous and aluminium castings, and core forging. Kalyani indicated that the company expects improved operating profitability supported by organic sales growth over the next 24-36 months, despite challenges such as weak CV demand in Europe.

Going into the second quarter of FY25, Bharat Forge anticipates continued positive momentum in its Indian operations and expects improvements in its overseas businesses. Shares of the company rose by 3.18% to Rs 1,608 apiece on the BSE.

(With inputs from agencies.)