Bharat Forge Q1 net profit declines 18% to Rs 175 cr

New Delhi: Bharat Forge on Thursday said its consolidated net profit declined 18 per cent to Rs 175 crore in the June 2024 quarter.

The diversified firm reported a net profit of Rs 214 crore during the April-June quarter of last fiscal.

During the quarter under review, the company's total income stood at Rs 4,158 crore from Rs 3,941 crore in the year-ago period, Bharat Forge said in a regulatory filing.

The company said its board has also approved to raise up to Rs 2,000 crore by issuing securities.

"Steady execution of the defence export orders and recovery in the Oil & Gas business sustained the operating performance," Bharat Forge Chairman & Managing Director BN Kalyani said.

The group secured new orders worth Rs 980 crore across defence, ferrous and aluminium castings and the core forging business, he added.

"As the company embarks on various productivity and cost improvement measures, we expect the operating profitability amply supported by organic sales growth to improve over the next 24-36 months," Kalyani stated.

The weak CV demand in Europe was a spoiler in an otherwise stable quarter for overseas operations, he said.

"Looking ahead into Q2 FY25, we expect continued positive momentum in the Indian entities across forging, castings & defence and for the overseas operations, we reiterate our expectation that these businesses will see an improvement in operational parameters resulting in the reduction of losses in FY25," Kalyani stated.

Shares of the company were trading 3.18 per cent up at Rs 1,608 apiece on the BSE.