Balu Forge Industries Limited — PPTs, 04-12-2024: Investor Presentation

**Investor Presentation Summary: Balu Forge Industries Ltd (BFIL)**

**Financial Highlights:**

BFIL reported a strong revenue growth with operations revenue reaching ₹2,228.79 Mn in Q2 FY25, a 60.09% increase YoY, and ₹3,981.88 Mn for H1 FY25, reflecting a 58.26% growth. EBITDA surged to ₹652.22 Mn in Q2, up 116.50% YoY, with an EBITDA margin of 29.3%. PAT increased by 106.88% YoY to ₹481.42 Mn, yielding a PAT margin of 21.6%.

**Strategic Initiatives and Growth Drivers:**

The company is progressing with a new state-of-the-art integrated forging and machining complex in Belgaum, Karnataka, aimed at enhancing capacity with an additional 72,000 TPA for forging. This expansion is expected to significantly boost operational capabilities and align with demand from key sectors like automotive and defense.

**Business Developments:**

BFIL has a robust order book with full utilization of existing machining capacity. Initial commercial operations for the new 72,000 TPA forging facility are on track. The company has also introduced advanced CNC machining technology to enhance manufacturing efficiency.

**Market Position and Competitive Advantage:**

Balu Forge is strategically positioned to exploit growth in the domestic forging market, benefiting from government support and a strong demand outlook in automotive and aerospace sectors.

**Investor Implications:**

With a positive cash flow of ₹499.9 Mn for H1 FY25 and a reduced working capital cycle from 137 days to 106 days, BFIL is well-prepared to capitalize on growth opportunities in specialized markets. Ongoing investments and capacity expansions present a compelling growth narrative for shareholders.