AI assistant
Bharat Forge Ltd — Regulatory Filings 2024
Nov 14, 2024
61415_rns_2024-11-14_bde436ff-fedd-43a9-a11f-9de1a6dc3c26.pdf
Regulatory Filings
Open in viewerOpens in your device viewer
B H A R A T F O R G E
November 14, 2024
To
BSE Limited 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai - 400 001
BSE SCRIP CODE - 500493
National Stock Exchange of India Limited
‘Exchange Plaza’, Bandra-Kurla Complex, Bandra (East) Mumbai- 400 051
NSE Symbol Equity - BHARATFORG
Sub. : Earnings Update of Q2 for FY 2024-25
Dear Sir / Madam,
With reference to the captioned subject, please find enclosed herewith Earnings Update issued by the Company of Q2 for FY 2024-25.
Kindly take the same on record.
Thanking you,
Yours faithfully,
For Bharat Forge Limited,
TEJASWINI Digitally signed by TEJASWINI RAMKRISHNA RAMKRISHNA CHAUDHARI Date: 2024.11.14 12:48:45 CHAUDHARI +05'30'
Tejaswini Chaudhari Company Secretary & Compliance Officer Encl. : as above
==> picture [46 x 46] intentionally omitted <==
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
Q2 FY25 ANALYST UPDATE
==> picture [235 x 54] intentionally omitted <==
Automotive | Renewable Energy | Oil & Gas | Defence | Aerospace | Marine | Construction & Mining | Rail
Management Commentary: Q2 FY25 Performance
==> picture [235 x 54] intentionally omitted <==
BFL 3 Month Report: “The company reported a consolidated revenue of Rs 3,689 Crore and EBITDA of Rs 690 Crore. Despite a YoY revenue de-growth of 2.3% driven by weakness in European automotive markets, EBITDA grew by 10.8% resulting in margin improvement by 220 bps YoY from 16.5% to 18.7%. In the quarter, the group secured new orders worth Rs 1,207 Crores across Defence, castings (Ferrous & Aluminum) and the core forging business. The order wins for H1 FY25 amounts to Rs 2,216 Crores with 2/3 coming from Defence & 1/3 from components business.
BFL group’s defence business posted revenue of Rs 509 Crore in Q2 registering a jump of 67% YoY. With order wins of Rs 642 Crores in Q2, the executable order book as of September 30[th] stands at Rs 5,905 Crores. The order book does not include any potential orders from domestic or export market. JS Auto continues to register impressive operating performance during the quarter with revenue growth of 32% to Rs 165 Crore and EBITDA growth of 60% at Rs 20 Crores compared to Q2 FY24. in H1 FY25, JSA won orders worth Rs 173 crores and is clearly benefitting from the shift of manufacturing supply chain to India. We expect this business to continue to register strong performance in the foreseeable future.
The Overseas operations recorded sales of Rs 1,145 Crores and EBITDA of Rs 16 Crores. The sluggish economic condition in Europe and its impact on the automotive industry is delaying the recovery in the overseas business.
Looking ahead into H2 FY25, we expect the performance to be stable as compared to H1 FY25 as we continue to focus on revenue growth & profitability improvement in our subsidiaries (Indian & Overseas).”
B.N. Kalyani, Chairman & Managing Director
Standalone Financial Highlights Q2FY25
==> picture [235 x 54] intentionally omitted <==
Revenue
==> picture [249 x 88] intentionally omitted <==
----- Start of picture text -----
23,381
22,467 22,494
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Revenues at Rs 22,467 million in Q2FY25 was flat YoY. While domestic revenues were up 12%, export revenues were down 9% primarily led by weakness in European CVs.
EBITDA
==> picture [250 x 86] intentionally omitted <==
----- Start of picture text -----
6,477 6,576
6,160
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
EBITDA margin at 28.8% in Q2 FY25 was up 140 bps vs Q2FY24 due to steady execution in Defence and recovery in Oil & Gas from the trough seen in FY24.
==> picture [249 x 113] intentionally omitted <==
----- Start of picture text -----
PBT before Ex. Gain/ Loss
5,107 5,226
4,730
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Superior operational performance drove PBT before Exchange gain/ (loss) to Rs 5,107 million in Q2 FY25
3
Review of India Business
==> picture [235 x 54] intentionally omitted <==
Commercial Vehicles
==> picture [261 x 77] intentionally omitted <==
----- Start of picture text -----
2,603
2,489
2,199
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Automotive Business: The CV business remained soft YoY as domestic demand remained sluggish. The sector has seen stupendous growth over the last 2-3 years. The government’s capex push, increased construction & manufacturing activity in the private sector augurs well for longer-term prospects of CV sector growth in India.
Passenger Vehicles
==> picture [250 x 87] intentionally omitted <==
----- Start of picture text -----
920
816 817
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Domestic PVs recouped slightly on a YoY basis. Our focus towards building new partnerships, longer term growth in personal mobility and changing customer preferences towards more premium and safer vehicles augurs well for us.
Industrial
==> picture [250 x 98] intentionally omitted <==
----- Start of picture text -----
7,290
6,392
5,080
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Industrials Business: The Industrial segment grew by 26% YoY to Rs 6,392 million. Execution of defence orders drove the stellar performance. The growth was also supported by a good show in Construction-Mining/ Power generation. The outlook for the business remains promising driven by strong spend on power infrastructure and new capacity additions in the pipeline in India.
Note: Other Revenue stood at Rs 1,207 million in Q2FY25
4
Review of Export Business
==> picture [235 x 54] intentionally omitted <==
Commercial Vehicles
==> picture [261 x 82] intentionally omitted <==
----- Start of picture text -----
5,198 5,318 5,474
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Automotive Business: Export CV business continued to show growth. Europe remained a pain point as growth continues to languish. Ex of Europe our CV export business reported a 14% YoY improvement indicating resilience in underlying demand from North America. We remain cautiously optimistic going ahead.
Passenger Vehicles
==> picture [251 x 97] intentionally omitted <==
----- Start of picture text -----
3,359
2,770 2,752
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
PV export business remains on course to consolidate its gains over the last three years. Despite a slack demand environment in Europe and slower momentum in North America our business delivered steady QoQ performance
Industrial
==> picture [251 x 87] intentionally omitted <==
----- Start of picture text -----
4,039
3,780
3,631
Q2 FY25 Q1 FY25 Q2 FY24
----- End of picture text -----
Industrials Business: Industrial business continued to benefit from the diversifications strategy. With the appropriate capacity mix and offerings across multiple sectors we hope to benefit from superior operating leverage. The demand environment (ex-Europe) remains sanguine as spend on infrastructure is a key focus area globally.
5
Export Break up by Geography
==> picture [235 x 54] intentionally omitted <==
| Rs. Million Particulars Q2FY25 Q1FY25 Q2FY24 Americas 8,555 7,912 8,151 Europe 2,651 3,175 3,327 Asia 543 615 1,393 Total 11,749 11,702 12,871 |
|
|---|---|
Consolidated Financial Highlights – Q2FY25
==> picture [235 x 54] intentionally omitted <==
Revenues
==> picture [418 x 81] intentionally omitted <==
----- Start of picture text -----
41,061
36,885 37,742 2.3% decline in revenues primarily
driven by weakness in the European
markets.
Q2FY25 Q1FY25 Q2FY24
----- End of picture text -----
==> picture [209 x 92] intentionally omitted <==
----- Start of picture text -----
EBITDA
7,592
6,895
6,222
Q2FY25 Q1FY25 Q2FY24
----- End of picture text -----
EBITDA margins have improved by 220 bps YoY driven by improvement in capacity utilization and product mix in India.
PBT before Forex & Exceptional item
Rs. Million
| Particulars | September 30, 2024 | March 31, 2024 |
|---|---|---|
| Long Term Debt | 23,948 | 24,605 |
| WC & Bill Discounting | 49,173 | 50,616 |
| Equity | 72,433 | 71,653 |
| Cash | 25,493 | 31,799 |
| D/E | 1.01 | 1.05 |
| D/E (Net) | 0.66 | 0.61 |
| RoCE (Net) | 17.7% | 16.3% |
==> picture [209 x 75] intentionally omitted <==
----- Start of picture text -----
4,689
4,030
3,389
Q2FY25 Q1FY25 Q2FY24
----- End of picture text -----
PBT has increased by 18.9% on a YoY driven by improvement in performance at KSSL and halving of losses in the E-Mobility business.
7
==> picture [960 x 71] intentionally omitted <==
Financials Annexures
Standalone P&L Highlights – Q2 FY25 & H1 FY25
==> picture [235 x 54] intentionally omitted <==
| Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million | Rs. Million |
|---|---|---|---|---|---|---|---|---|---|
| Standalone Financials | Q2 FY25 | Q1 FY25 | QoQ | Q2 FY24 | YoY | H1 FY25 | H1 FY24 | YoY | |
| Shipment Tonnage | 64,098 | 67,501 | (5.0)% | 70,509 | (9.1)% | 131,599 | 138,537 | (5.0) | |
| Domestic Revenue | 10,443 | 11,407 | (8.5)% | 9,310 | 12.2% | 21,850 | 18,520 | 18.0% | |
| Export Revenue | 11,749 | 11,702 | 0.4% | 12,871 | (8.7)% | 23,451 | 24,660 | (4.9)% | |
| Other Operating Income | 275 | 272 | 313 | 547 | 587 | ||||
| Total Revenue | 22,467 | 23,381 | (3.9)% | 22,494 | (0.1)% | 45,848 | 43,767 | 4.8% | |
| EBITDA | 6,477 | 6,576 | (1.5)% | 6,160 | 5.1% | 13,053 | 11,693 | 11.6% | |
| EBITDA% | 28.8% | 28.1% | 27.4% | 28.5% | 26.7% | ||||
| Other Income | 348 | 446 | 424 | 794 | 896 | ||||
| Profit Before Tax | 5,107 | 5,226 | (2.3)% | 4,730 | 8.0% | 10,333 | 8,941 | 15.6% | |
| PBT % | 22.7% | 22.4% | 21.0% | 22.5% | 20.4% | ||||
| Exchange Gain / (Loss) | (223) | (59) | (93) | (282) | (140) | ||||
| Exceptional Item | 135 | (1,457) | - | (1,322) | (21) | ||||
| Profit Before Tax | 5,019 | 3,710 | 4,616 | 8,729 | 8,780 | ||||
| Profit After Tax | 3,612 | 2,696 | 34.0% | 3,460 | 4.4% | 6,308 | 6,574 | (4.0)% |
9
Standalone B/S Highlights – Q2 FY25
==> picture [235 x 54] intentionally omitted <==
| Rs. Million | Rs. Million | Rs. Million |
|---|---|---|
| Particulars (Standalone) | September 30, 2024 | March 31, 2024 |
| Long Term Debt | 12,839 | 17,107 |
| Working Capital Loan & Bill Discounting | 27,584 | 26,892 |
| Equity | 88,243 | 85,688 |
| Cash | 19,372 | 25,250 |
| ROCE (Net of Cash) | 20.5% | 20.0% |
| RONW | 15.8% | 16.6% |
| D/E (Net) | 0.24 | 0.22 |
| Net Debt/ EBITDA | 0.81 | 0.76 |
10
Consolidated Financials Reconciliation
==> picture [235 x 54] intentionally omitted <==
Rs. Million
| Q2 FY25 | Indian Operations | Overseas Operations | E-Mobility | Consolidated |
|---|---|---|---|---|
| Total Revenue | 25,409 | 11,447 | 29 | 36,885 |
| EBITDA | 6,870 | 160 | (135) | 6,895 |
| EBITDA % | 27.0% | 1.4% | - | 18.7% |
| PBT | 5,365 | (1,136) | (199) | 4,030 |
| Exchange Gain/(loss) | (178) | 3 | 2 | (173) |
| Exceptional Items | - | - | - | - |
| PBT after Exchange Gain/ (Loss) | 5,187 | (1,133) | (197) | 3,857 |
| Q2 FY24 | Indian Operations | Overseas Operations | E-Mobility | Consolidated |
| Total Revenue | 25,591 | 12,053 | 98 | 37,742 |
| EBITDA | 6,431 | 90 | (299) | 6,222 |
| EBITDA % | 25.1% | 0.7% | - | 16.5% |
| PBT | 4,943 | (1,156) | (398) | 3,389 |
| Exchange Gain/(loss) | (91) | 76 | 9 | (6) |
| Exceptional Items | (21) | - | - | (21) |
| PBT after Exchange Gain/ (Loss) | 4,831 | (1,080) | (389) | 3,362 |
11
Overseas Financial Highlights – Q2 FY25
==> picture [235 x 54] intentionally omitted <==
Rs. Million
| European Mfg. Ops | Q2 FY25 | Q1 FY25 | Q2 FY24 |
|---|---|---|---|
| Total Revenue | 9,529 | 10,609 | 10,122 |
| EBITDA | 376 | 370 | 353 |
| EBITDA % | 3.9% | 3.5% | 3.5% |
| PBT Before Ex Gain/(Loss) | (527) | (529) | (544) |
| US Mfg. Ops | Q2 FY25 | Q1 FY25 | Q2 FY24 |
|---|---|---|---|
| Total Revenue | 1,918 | 2,591 | 1,931 |
| EBITDA | (216) | (235) | (263) |
| EBITDA % | - | - | - |
| PBT Before Ex Gain/(Loss) | (609) | (640) | (612) |
| Overseas Mfg. Ops | Q2 FY25 | Q1 FY25 | Q2 FY24 |
|---|---|---|---|
| Steel Forgings | 5,976 (52%) | 7,333 (56%) | 7,160 (59%) |
| AI Forgings | 5,471 (48%) | 5,867 (44%) | 4,893 (41%) |
| Total | 11,447 | 13,200 | 12,053 |
12
Indian Subsidiary Financials – Q2 FY25
==> picture [235 x 54] intentionally omitted <==
| Rs. Million | Rs. Million | Rs. Million | Rs. Million |
|---|---|---|---|
| KSSL | Q2 FY25 | Q1 FY25 | Q2 FY24 |
| Total Revenue | 4,682 | 5,035 | 2,962 |
| EBITDA | 333 | 331 | 169 |
| EBITDA% | 7.1% | 6.6% | 5.7% |
| PBT Before Exchange Gain/(Loss) | 376 | 388 | 311 |
| KPTL | Q2 FY25 | Q1 FY25 | Q2 FY24 |
|---|---|---|---|
| Total Revenue | 29 | 30 | 99 |
| EBITDA | (135) | (186) | (299) |
| EBITDA% | - | - | - |
| PBT Before Exchange Gain/(Loss) | (199) | (297) | (399) |
| BFISL | Q2 FY25 | Q1 FY25 | Q2 FY24 |
|---|---|---|---|
| Total Revenue | 1,920 | 1,855 | 1,516 |
| EBITDA | 228 | 230 | 173 |
| EBITDA% | 11.9% | 12.4% | 11.4% |
| PBT Before Exchange Gain/(Loss) | 106 | 97 | 43 |
13
==> picture [960 x 71] intentionally omitted <==
Automotive | Renewable Energy | Oil & Gas | Defence | Aerospace | Marine | Construction & Mining | Rail