Bharat Forge posts net profit of Rs 205 crore in Q4; shares hit 52-week high

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The Pune-based forging company’s revenue during Q4FY21 rose 48.4 percent to Rs 1,307 crore from Rs 881.2 crore, YoY. At the operating level, EBITDA increased to Rs 359 crore from Rs 110.3 crore, while the margin improved to 27.5% from 12.5%, YoY.

Bharat Forge posts net profit of Rs 205 crore in Q4; shares hit 52-week high
Bharat Forge on Friday reported a net profit of Rs 205.4 crore for the fourth quarter of fiscal 2021 led by a sharp improvement in operating performance. The company had posted a loss of Rs 73.3 crore in the year-ago period.
The Pune-based forging company’s revenue during Q4FY21 rose 48.4 percent to Rs 1,307 crore from Rs 881.2 crore, YoY.
At the operating level, earnings before interest, tax, depreciation, and amortization (EBITDA) increased to Rs 359 crore from Rs 110.3 crore, while EBITDA margin improved to 27.5 percent from 12.5 percent, YoY.
"The balance sheet at the end of FY21 continues to be robust with a significant level of liquidity. Operating cash flows were strong in FY21 and will improve further in FY22. Return ratio will normalise towards the 20 percent range with improvement in asset utilisation in the coming years,” said BN Kalyani, Chairman & Managing Director, Bharat Forge.
The company's board also recommended a final dividend of Rs 2 per equity share of the face value of Rs 2 each (100 percent) for the financial year ended March 31, 2021.
"As we enter FY22, we are seeing robust demand continue in a major segment in the export business. The lockdown in India to curtail the spread of COVID-19 has clearly had an impact on demand & production in the automotive sector. We are optimistic that this weakness is temporary in nature and we will witness growth in India as business activities normalise,” Kalyani added.
The share price of Bharat Forge rallied over 7 percent to hit a 52-week high of Rs 749.00 apiece on the BSE after the company declared its March quarter results. At 1:00 pm, the scrip was trading 4.91 percent higher at Rs 730.05.

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