Bharat Forge Limited — Important, 14-11-2024: General Updates

Bharat Forge has reported a consolidated revenue of ₹3,689 crore for Q2 FY25, reflecting a year-over-year decline of 2.3%. However, EBITDA improved by 10.8% to ₹690 crore, leading to an enhanced margin of 18.7% compared to 16.5% in the previous year. The company secured new orders totaling ₹1,207 crore across various segments, with defence contributing significantly. Notably, the defence sector recorded a 67% increase in revenue to ₹509 crore.

In standalone results, revenue remained flat at ₹22,467 million, but EBITDA margin saw a rise to 28.8%, up from 27.4% year-over-year, driven by solid execution in defence projects and a recovery in the oil & gas sector. Domestic revenues grew by 12%, while export revenues faced a 9% decline due to issues in the European commercial vehicle market. Looking ahead, Bharat Forge aims to stabilize performance in H2 FY25 while focusing on growth opportunities in the defence and industrial sectors. Investors should consider the strong order book and operational improvements, signifying a positive outlook amidst challenging market conditions.