Bharat Forge CMD Baba Kalyani says that the electric vehicle capex by OEMs is creating a lot of opportunities that will boost the company’s exports.
“Most OEMs are investing a large amount of capital on how to go electric and electric plus autonomous. So traditional business which is going to last for next 10-15 years and this creates a lot of opportunity for companies who are in this sector. So all this is playing out in the larger amount of exports and our exports will continue to grow,” Kalyani told CNBC-TV18 in an interview on Monday.
Bharat Forge, on Friday, June 4, 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 forging company’s revenue during Q4FY21 rose 48.4 percent to Rs 1,307 crore from Rs 881.2 crore, YoY.
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“First time I have seen all segments of our export market firing on all cylinders whether it’s automotive, commercial vehicles, industrials, oil and gas, aerospace everything is positive,” Kalyani said.
On price hike, Kalyani said, “We have a huge commodity upcycle especially when it comes to metals and metals are our inputs. In our case and most of the automotive supply case or industrial equipment chain, it is a direct pass-through in terms of cost to our customers. So we do not a problem with that.”
For the entire management interview, watch the video