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Bharat Forge Ltd — Interim / Quarterly Report 2025
Feb 12, 2025
61415_rns_2025-02-12_a3f6f9c9-5f4e-4be6-b93e-e40d48515430.pdf
Interim / Quarterly Report
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B H A R A T F O R G E
February 12, 2025
To
BSE Limited Corporate Relations Department Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai 400 001, Maharashtra, India
National Stock Exchange of India Limited Listing Department
Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (East) Mumbai 400 051, Maharashtra, India
Scrip Code: 500493
Symbol: BHARATFORG
Sub. : Earnings Update for Q3 of FY 2024-25
Dear Sir / Madam,
With reference to the captioned subject, please find enclosed herewith Earnings Update issued by the Company for Q3 for FY 2024-25.
Please take note of the same.
Thanking you,
Yours faithfully, For Bharat Forge Limited TEJASWINI Digitally signed by TEJASWINI RAMKRISHNA RAMKRISHNA CHAUDHARI Date: 2025.02.12 16:19:37 CHAUDHARI +05'30'
Tejaswini Chaudhari Company Secretary & Compliance Officer Membership No.: A18907
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CIN L25209PN1961PLC012046 BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036, MAHARASHTRA, INDIA. Phone : + 91 20 6704 2476 / 6704 2850 (Secretarial) Fax : 020 2682 2163 Email : [email protected] Website : www.bharatforge.com
Q3 FY25 ANALYST UPDATE
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Automotive | Renewable Energy | Oil & Gas | Defence | Aerospace | Marine | Construction & Mining | Rail
Management Commentary: Q3 FY25 Performance
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BFL 3 Month Report: “The company reported a consolidated revenue of Rs 3,476 Crore and EBITDA of Rs 638 Crore, a degrowth of 10% and 5% respectively. The primary factor for decline in performance is the anaemic economic condition in EU which impacted the performance of the European operations and exports into Europe. The lumpy nature of the defence business also impacted the performance of the company in the quarter.
Bharat Forge group secured new orders worth Rs 830 Crores across various business verticals in Q3FY25.
BFL group’s defence business posted revenue of Rs 337 Crore in Q3. With order wins of Rs 97 Crores in Q3, the executable order book as of December 31[st] stands at Rs 5,706 Crores.
For the Aerospace business, we have approved an investment for setting up a dedicated state of the art machining line for landing gears components and a ring mill for manufacturing high precision forging to address the growing demands for jet engine components from the global aerospace industry. The capacities will come online in FY2027. We expect the aerospace business to witness strong growth over the coming 3 - 4 years.
JS Auto continued registering strong performance during the quarter with revenue growing by 20% to Rs 166 Crore and EBITDA growth of 24% at Rs 23 Crores as compared to Q3 FY24. During 9M FY25, JSA won orders worth Rs 183 crores benefiting from the positive momentum built around Indian manufacturing. We expect this business to surpass the Rs 1,000 Crs revenue milestone in the next 2-3 years.
Looking ahead into Q4 FY25 & FY26, we expect the consolidated performance to be stable, as pockets of strength emerge from the newer businesses to offset the slowdown in the automotive sector globally. We will undertake a thorough review of our manufacturing footprint of our overseas business with an endeavor to achieve operational stability in this challenging environment.”
B.N. Kalyani, Chairman & Managing Director
Standalone Financial Highlights Q3FY25
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Rs Million Revenue
22,467 22,634
20,960
Q3 FY25 Q2 FY25 Q3 FY24
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Revenues at Rs 20,959 million in Q3FY25 were lower on account of two key factors
-
Weak demand conditions in EU impacting exports.
-
Lower sales of defence products on QoQ & YoY basis.
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EBITDA
6,477 6,452
5,893
Q3 FY25 Q2 FY25 Q3 FY24
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Despite a lower topline, EBITDA margin at 28.1% was sustained due to a favorable product mix in Q3FY25.
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PBT before Ex. Gain/ Loss
5,107
4,865
4,530
Q3 FY25 Q2 FY25 Q3 FY24
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Operational performance weighed in as PBT before Exchange gain/ (loss) came in at Rs 4,530 million in Q3 FY25,down 11.3% compared to the previous quarter.
3
Review of India Business
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Rs Million Commercial Vehicles
2,583
2,279 2,199
Q3 FY25 Q2 FY25 Q3 FY24
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Automotive Business: The India CV sector has seen good growth over the last 3-4 years in terms of both absolute number and tonnage growth. However, for 9M FY25, a large base effect coupled with a cool-off in capex growth has resulted in tepid demand for the sector and for our CV business. The long term outlook for the industry is positive and we continue to evaluate organic & inorganic opportunities to further enhance our presence in the CV space.
Passenger Vehicles
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985
920
770
Q3 FY25 Q2 FY25 Q3 FY24
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Domestic PVs has recovered sharply on a YoY basis driven by greater penetration. Our focus is towards building new partnerships to capture the longer term growth potential in personal mobility and changing customer preferences towards more premium and safer vehicles.
Industrial
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6,392
5,897
5,126
Q3 FY25 Q2 FY25 Q3 FY24
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Industrials Business: The Industrial segment posted revenues of Rs 5,126 million. The decline on sequential & annual basis is primarily a function of lower defence sales during the quarter.
Despite capex momentum slowing down and its potential impact on our Industrials business in the near term, we believe that sectors such as nuclear, space provide ample opportunity in the medium to long term to grow our industrial revenues.
Note: Other Revenue stood at Rs 1,059 million in Q3FY25
4
Review of Export Business
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Rs Million Commercial Vehicles
4,985 5,198 5,245
Q3 FY25 Q2 FY25 Q3 FY24
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Automotive Business: Export CV business continued to be steady. While North America remained stable, weakness in Europe and slower growth in select Asian markets drove revenue lower. Going ahead we expect the market conditions in North America to improve while a gloomy economic outlook in Europe is likely to weigh on sentiment.
Passenger Vehicles
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3,282
2,770
2,424
Q3 FY25 Q2 FY25 Q3 FY24
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Some OEM specific weakness, as well as a frail economic recovery in Europe affected PV Exports. New order wins have come in from the PV segment which will support growth over the medium term.
Industrial
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4,081
3,780 3,608
Q3 FY25 Q2 FY25 Q3 FY24
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Industrials Business: Industrial business continued to benefit from the diversification strategy. The sanguine YoY performance was across-the-board with all verticals registering growth. Aerospace is a sector which should finally see strong traction in the coming few years.
5
Export Break up by Geography
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| Rs. Million Particulars Q3FY25 Q2FY25 Q3FY24 Americas 8,540 8,555 8,076 Europe 2,333 2,651 2,820 Asia 637 543 1,238 Total 11,510 11,749 12,135 |
|
|---|---|
Consolidated Financial Highlights – Q3FY25
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Revenues
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36,885 38,664
34,756 10% decline in revenues primarily
driven by weakness in the European
markets.
Q3FY25 Q2FY25 Q3FY24
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Rs. Million
| 6,378 6,895 6,727 Q3FY25 Q2FY25 Q3FY24 EBITDA PBT bf F & Etil it EBITDA margins have improved by 100 bps YoY driven by improvement in performance of Indian entities |
Particulars | December 31, 2024 | March 31, 2024 |
|---|---|---|---|
| Long Term Debt | 20,013 | 24,605 | |
| WC & Bill Discounting | 43,325 | 50,616 | |
| Equity | 90,785 | 71,653 | |
| Cash | 30,905 | 31,799 | |
| D/E | 0.70 | 1.05 | |
| D/E (Net) | 0.36 | 0.61 | |
| RoCE (Net) | 16.5% | 16.3% |
PBT before Forex & Exceptional item
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4,030
3,683
3,522
Q3FY25 Q2FY25 Q3FY24
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PBT decline of ~4% YoY is primarily on account of losses in the overseas business.
7
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Financials Annexures
Standalone P&L Highlights – Q3 FY25 & 9M FY25
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| Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million |
|---|---|---|---|---|---|---|---|---|---|
| Standalone Financials | Q3 FY25 | Q2 FY25 | QoQ | Q3 FY24 | YoY | 9M FY25 | 9M FY24 | YoY | |
| Shipment Tonnage | 61,507 | 64,098 | (4.0)% | 67,477 | (8.8)% | 193,106 | 206,014 | (6.3) | |
| Domestic Revenue | 9,187 | 10,443 | (12.0)% | 10,210 | (10.0)% | 31,037 | 28,730 | 8.0% | |
| Export Revenue | 11,510 | 11,749 | (2.0)% | 12,135 | (5.2)% | 34,961 | 36,795 | (5.0)% | |
| Other Operating Income | 263 | 275 | 289 | 810 | 876 | ||||
| Total Revenue | 20,960 | 22,467 | (6.7)% | 22,634 | (7.4)% | 66,808 | 66,401 | 0.6% | |
| EBITDA | 5,893 | 6,477 | (9.0)% | 6,452 | (8.7)% | 18,946 | 18,145 | 4.4% | |
| EBITDA% | 28.1% | 28.8% | 28.5% | 28.4% | 27.3% | ||||
| Other Income | 314 | 348 | 346 | 1,108 | 1,242 | ||||
| Profit Before Tax | 4,530 | 5,107 | (11.3)% | 4,865 | (6.9)% | 14,863 | 13,806 | 7.7% | |
| PBT % | 21.6% | 22.7% | 21.5% | 22.2% | 20.8% | ||||
| Exchange Gain / (Loss) | 205 | (223) | 179 | (79) | 39 | ||||
| Exceptional Item | (9) | 135 | - | (1,331) | (21) | ||||
| Profit Before Tax | 4,726 | 5,019 | 5,044 | 13,453 | 13,824 | ||||
| Profit After Tax | 3,460 | 3,612 | (4.2)% | 3,778 | (8.4)% | 9,766 | 10,352 | (5.7)% |
9
Standalone B/S Highlights – Q3 FY25
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Rs. Million
| Particulars (Standalone) | December 31, 2024 | March 31, 2024 |
|---|---|---|
| Long Term Debt | 12,868 | 17,107 |
| Working Capital Loan & Bill Discounting | 27,525 | 26,892 |
| Equity | 107,646 | 85,688 |
| Cash | 24,717 | 25,250 |
| ROCE (Net of Cash) | 18.0% | 20.0% |
| RONW | 12.5% | 16.6% |
| D/E (Net) | 0.2 | 0.22 |
| Net Debt/ EBITDA | 0.87 | 0.76 |
10
Consolidated Financials Reconciliation
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Rs. Million
| Q3 FY25 | Indian Operations | Overseas Operations | E-Mobility | Consolidated |
|---|---|---|---|---|
| Total Revenue | 23,771 | 10,979 | 6 | 34,756 |
| EBITDA | 6,459 | 38 | (120) | 6,378 |
| EBITDA % | 27.2% | 0.3% | - | 18.4% |
| PBT | 5,030 | (1,344) | (164) | 3,522 |
| Exchange Gain/(loss) | 100 | (137) | 2 | (36) |
| Exceptional Items | - | - | - | - |
| PBT after Exchange Gain/ (Loss) | 5,130 | (1,481) | (162) | 3,486 |
| Q3 FY24 | Indian Operations | Overseas Operations | E-Mobility | Consolidated |
| Total Revenue | 25,544 | 13,099 | 21 | 38,664 |
| EBITDA | 6,858 | 218 | (349) | 6,727 |
| EBITDA % | 26.8% | 1.7% | - | 17.4% |
| PBT | 5,212 | (1,100) | (429) | 3,683 |
| Exchange Gain/(loss) | 192 | 54 | 4 | 250 |
| Exceptional Items | - | - | - | - |
| PBT after Exchange Gain/ (Loss) | 5,404 | (1,046) | (425) | 3,933 |
11
Overseas Financial Highlights – Q3 FY25
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Rs. Million
| European Mfg. Ops | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Total Revenue | 8,889 | 9,529 | 10,534 |
| EBITDA | 100 | 376 | 218 |
| EBITDA % | 1.1% | 3.9% | 2.1% |
| PBT Before Ex Gain/(Loss) | (917) | (527) | (739) |
| US Mfg. Ops | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Total Revenue | 2,090 | 1,918 | 2,565 |
| EBITDA | (62) | (216) | - |
| EBITDA % | - | - | - |
| PBT Before Ex Gain/(Loss) | (427) | (609) | (361) |
| Overseas Mfg. Ops | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Steel Forgings | 6,536 (60%) | 5,976 (52%) | 8,219 (63%) |
| AI Forgings | 4,444 (40%) | 5,471 (48%) | 4,880 (37%) |
| Total | 10,979 | 11,447 | 13,099 |
12
Indian Subsidiary Financials – Q3 FY25
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| Rs. Million | Rs. Million | Rs. Million | Rs. Million |
|---|---|---|---|
| KSSL | Q3 FY25 | Q2 FY25 | Q3 FY24 |
| Total Revenue | 3,195 | 4,682 | 4,349 |
| EBITDA | 184 | 333 | 272 |
| EBITDA% | 5.8% | 7.1% | 6.3% |
| PBT Before Exchange Gain/(Loss) | 241 | 376 | 378 |
| KPTL | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Total Revenue | 6 | 29 | 21 |
| EBITDA | (120) | (135) | (349) |
| EBITDA% | - | - | - |
| PBT Before Exchange Gain/(Loss) | (164) | (199) | (429) |
| BFISL | Q3 FY25 | Q2 FY25 | Q3 FY24 |
|---|---|---|---|
| Total Revenue | 1,915 | 1,920 | 1,666 |
| EBITDA | 250 | 228 | 235 |
| EBITDA% | 13.1% | 11.9% | 14.1% |
| PBT Before Exchange Gain/(Loss) | 122 | 106 | 122 |
13
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Automotive | Renewable Energy | Oil & Gas | Defence | Aerospace | Marine | Construction & Mining | Rail