News Details

Results - Analysis

Bharat Forge

09-May-25    10:08

On consolidated basis

Quarter ended March 2025 compared with Quarter ended March 2024.

Net sales (including other operating income) of Bharat Forge has declined 7.48% to Rs 3852.6 crore.  Sales of Forgings segment fell 0.82% to Rs 3,436.23 crore (accounting for 85.78% of total sales).  Sales of Others segment has gone up 17.47% to Rs 285.12 crore (accounting for 7.12% of total sales).  Sales of Defence segment has gone down 49.29% to Rs 284.35 crore (accounting for 7.10% of total sales).  Inter-segment sales rose Rs 103.88 crore to Rs 153.10 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 4.24% to Rs 504.58 crore.  PBIT of Forgings segment rose 4.94% to Rs 474.28 crore (accounting for 93.99% of total PBIT).  PBIT of Others reported profit of Rs 21.54 crore compared to loss of Rs 29.68 crore.  PBIT of Defence segment fell 85.81% to Rs 8.76 crore (accounting for 1.74% of total PBIT).  

PBIT margin of Forgings segment rose from 13.05% to 13.80%.  PBIT margin of Others segment rose from negative 12.23% to 7.55%.  PBIT margin of Defence segment fell from 11.02% to 3.08%.  Overall PBIT margin rose from 11.34% to 12.60%.  

Operating profit margin has jumped from 15.45% to 17.69%, leading to 5.92% rise in operating profit to Rs 681.35 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.98% to 42.67%.   Purchase of finished goods cost fell from 2.73% to 1.77%.   Employee cost increased from 11.56% to 12.21%.   Other expenses fell from 26.52% to 25.57%.   

Other income rose 13.26% to Rs 62.1 crore.  PBIDT rose 6.49% to Rs 743.45 crore.  Provision for interest fell 23.81% to Rs 88.01 crore.  Loan funds declined from Rs 7,947.53 crore as of 31 March 2024 to Rs 6,698.26 crore as of 31 March 2025.  Inventories rose to Rs 3,578.44 crore as of 31 March 2025 from Rs 3,216.08 crore as of 31 March 2024.  Sundry debtors were lower at Rs 2,899.61 crore as of 31 March 2025 compared to Rs 3,167.15 crore as of 31 March 2024.  Cash and bank balance declined from Rs 1,689.92 crore as of 31 March 2024 to Rs 1,291.38 crore as of 31 March 2025.  Investments rose to Rs 2,062.70 crore as of 31 March 2025 from Rs 1,848.98 crore as of 31 March 2024 .  

PBDT rose 12.50% to Rs 655.44 crore.  Provision for depreciation rose 8.04% to Rs 223.76 crore.  Fixed assets increased to Rs 8,095.85 crore as of 31 March 2025 from Rs 7,004.64 crore as of 31 March 2024.  Intangible assets declined from Rs 295.99 crore to Rs 262.78 crore.  

Profit before tax grew 14.97% to Rs 431.68 crore.  Extraordinary items were increased to Rs -5.30 crore.  Provision for tax was expense of Rs 141.48 crore, compared to Rs 138.7 crore.  Effective tax rate was 33.36% compared to 37.92%.

Net profit attributable to owners of the company increased 19.52% to Rs 282.00 crore.  

Equity capital increased from Rs 93.13 crore as of 31 March 2024 to Rs 95.63 crore as of 31 March 2025.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 44.07% as of 31 March 2025 ,compared to 45.25% as of 31 March 2024 .  

Full year results analysis.

Net sales (including other operating income) of Bharat Forge has declined 3.57% to Rs 15122.8 crore.  Sales of Forgings segment fell 5.52% to Rs 12,961.23 crore (accounting for 82.63% of total sales).  Sales of Others segment has gone up 16.33% to Rs 952.00 crore (accounting for 6.07% of total sales).  Sales of Defence segment has gone up 13.55% to Rs 1,771.99 crore (accounting for 11.30% of total sales).  Inter-segment sales rose Rs 414.72 crore to Rs 562.41 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 6.57% to Rs 2,081.85 crore.  PBIT of Forgings segment rose 0.73% to Rs 1,856.12 crore (accounting for 89.16% of total PBIT).  PBIT of Others reported profit of Rs 39.31 crore compared to loss of Rs 71.60 crore.  PBIT of Defence segment rose 2.17% to Rs 186.42 crore (accounting for 8.95% of total PBIT).  

PBIT margin of Forgings segment rose from 13.43% to 14.32%.  PBIT margin of Others segment rose from negative 8.75% to 4.13%.  PBIT margin of Defence segment fell from 11.69% to 10.52%.  Overall PBIT margin rose from 12.14% to 13.27%.  

Operating profit margin has jumped from 16.31% to 17.81%, leading to 5.32% rise in operating profit to Rs 2,693.95 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.51% to 42.37%.   Purchase of finished goods cost fell from 1.56% to 1.53%.   Employee cost increased from 11.86% to 12.30%.   Other expenses rose from 24.77% to 26.08%.   

Other income fell 6.01% to Rs 213.76 crore.  PBIDT rose 4.39% to Rs 2907.71 crore.  Provision for interest fell 15% to Rs 417.49 crore.  Loan funds declined from Rs 7,947.53 crore as of 31 March 2024 to Rs 6,698.26 crore as of 31 March 2025.  Inventories rose to Rs 3,578.44 crore as of 31 March 2025 from Rs 3,216.08 crore as of 31 March 2024.  Sundry debtors were lower at Rs 2,899.61 crore as of 31 March 2025 compared to Rs 3,167.15 crore as of 31 March 2024.  Cash and bank balance declined from Rs 1,689.92 crore as of 31 March 2024 to Rs 1,291.38 crore as of 31 March 2025.  Investments rose to Rs 2,062.70 crore as of 31 March 2025 from Rs 1,848.98 crore as of 31 March 2024 .  

PBDT rose 8.54% to Rs 2490.22 crore.  Provision for depreciation rose 3% to Rs 873.62 crore.  Fixed assets increased to Rs 8,095.85 crore as of 31 March 2025 from Rs 7,004.64 crore as of 31 March 2024.  Intangible assets declined from Rs 295.99 crore to Rs 262.78 crore.  

Profit before tax grew 11.80% to Rs 1,616.60 crore.  Extraordinary items were decreased to Rs -157.07 crore.  Provision for tax was expense of Rs 542.55 crore, compared to Rs 528.83 crore.  Effective tax rate was 37.27% compared to 36.75%.

Minority interest increased 31.95% to Rs -27.88 crore.  Net profit attributable to owners of the company decreased 1.05% to Rs 941.15 crore.  

Equity capital increased from Rs 93.13 crore as of 31 March 2024 to Rs 95.63 crore as of 31 March 2025.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 44.07% as of 31 March 2025 ,compared to 45.25% as of 31 March 2024 .  

Cash flow from operating activities increased to Rs 1,796.34 crore for year ended March 2025 from Rs 1,664.40 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 1,450.46 crore, compared to Rs 1,524.03 crore during the year ended March 2024.  

Other Highlights

The board has recommended a final Dividend of Rs 6 per equity share of the face value of Rs 2 each for the financial year ended March 31, 2025. The Final dividend, if approved by the members, will be paid on or after Tuesday, August 12, 2025.

In Q4 FY25, America contributed 66% to export revenue, Europe 26%, and Asia Pacific 8%.

Passenger vehicles contributed 26% to export revenue in Q4 FY25, Commercial Vehicles 38%, and Industrial 36%.

Management Comments :
B.N. Kalyani, Chairman & Managing Director said: 'In Q4 FY25, the company recorded Standalone Revenues of Rs 2,163 Crores and EBITDA of Rs 629 Crores (EBITDA margins of 29.1%) and PBT of Rs 494 crores. For the full year, revenues marginally dipped to Rs 8,844 Crores as against 8,969 Crores in FY24. EBITDA at Rs 2,524 Crores (EBITDA margins of 28.5%) and PBT at Rs 1,972 Crores saw a marginal improvement as compared to FY24. Balance sheet remained robust with cash on books of Rs 2,623 Crores. At a consolidated level, revenues remained flat at Rs 15,123 Crores as against Rs 15,682 Crores in FY24. EBITDA margins improved from 16.4% to 18.2%. During the quarter the company secured new orders worth Rs 4,343 Crores including Rs 3,417 Crs towards the ATAGS order. As of March 2025, the defence order book stood at Rs 9,420 Crores. Bharat Forge group secured new orders worth Rs 6,959 Crore in FY25 with Defence accounting for 70% of those. The ferrous castings business has had a strong year with revenues growing by 23%, EBITDA by 35% and doubling of profits as compared to FY24 with key return ratios exceeding 20%. As JSA continues to gain market share in the small casting segment, it is also embarking on a path to expand their product offerings and enhance their productivity to deliver strong operating leverage. For FY26, as of now, we are refraining from providing any outlook for the export business (30% of consolidated revenues) due to volatility & lack of visibility caused by the tariff situation. Our focus will be on improving the consolidated profitability driven by the following internal actions; reducing losses in the E-Mobility vertical; evaluating options for the steel business in Europe; improving operational performance in the Aluminum business leading to meaningful reduction in losses; leveraging our manufacturing footprint in North America to garner new business; focus on new business wins in traditional forgings, Defence, Aerospace & castings business to ensure continuation of momentum. The integration of AAM India business will occur in FY26 and we will leverage that platform to further our product portfolio and presence in India.'

 

Bharat Forge : Consolidated Results

Quarter ended Year ended Particulars 202503 202403 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 3,852.60 4,164.21 -7.48 15,122.80 15,682.07 -3.57 OPM (%) 17.69 15.45 224 bps 17.81 16.31 150 bps OP 681.35 643.28 5.92 2,693.95 2,557.94 5.32 Other Inc. 62.10 54.83 13.26 213.76 227.42 -6.01 PBIDT 743.45 698.11 6.49 2,907.71 2,785.36 4.39 Interest 88.01 115.52 -23.81 417.49 491.17 -15.00 PBDT 655.44 582.59 12.50 2,490.22 2,294.19 8.54 Depreciation 223.76 207.11 8.04 873.62 848.2 3.00 PBT 431.68 375.48 14.97 1616.6 1445.99 11.80 Share of Profit/(Loss) from Associates -2.27 0.56 PL -3.71 5.32 PL PBT before EO 429.41 376.04 14.19 1612.89 1451.31 11.13 EO Income -5.3 -10.23 48.19 -157.07 -12.32 -1,174.92 PBT after EO 424.11 365.81 15.94 1455.82 1438.99 1.17 Taxation 141.48 138.7 2.00 542.55 528.83 2.59 PAT 282.63 227.11 24.45 913.27 910.16 0.34 Minority Interest (MI) 0.63 -8.84 PL -27.88 -40.97 31.95 Net profit 282 235.95 19.52 941.15 951.13 -1.05 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 282 235.95 19.52 941.15 951.13 -1.05 EPS (Rs)* 5.97 5.07 17.72 21.81 20.06 8.71 * EPS is on current equity of Rs 95.62 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Bharat Forge : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202503 202403 Var.(%) % of (Total) 202503 202403 Var.(%) Sales Steel Forging 0.00 0.00 0.00 - General Engineering Trading etc 0.00 0.00 0.00 - Forgings 85.78 3,436.23 3,464.68 -0.82 82.63 12,961.23 13,717.90 -5.52 Projects (Capital Goods) 0.00 0.00 0.00 - Others 7.12 285.12 242.72 17.47 6.07 952.00 818.34 16.33 Defence 7.10 284.35 560.69 -49.29 11.30 1,771.99 1,560.55 13.55 Total Reported Sales 100.00 4,005.70 4,268.09 -6.15 100.00 15,685.22 16,096.79 -2.56 Less: Inter segment revenues   153.10 103.88 47.38   562.41 414.72 35.61 Net Sales 100.00 3,852.60 4,164.21 -7.48 100.00 15,122.80 15,682.07 -3.57 PBIT Steel Forging 0.00 0.00 0.00 - General Engineering Trading etc 0.00 0.00 0.00 - Forgings 93.99 474.28 451.97 4.94 89.16 1,856.12 1,842.62 0.73 Projects (Capital Goods) 0.00 0.00 0.00 - Others 4.27 21.54 -29.68 LP 1.89 39.31 -71.60 LP Defence 1.74 8.76 61.77 -85.81 8.95 186.42 182.46 2.17 Total PBIT 100.00 504.58 484.07 4.24 100.00 2,081.85 1,953.48 6.57 Less : Interest 88.01 115.52 -23.82 417.49 491.17 -15.00 Add: Other un-allcoable 12.83 -2.73 LP -51.47 -23.32 -120.71 PBIT Margin(%) Steel Forging   0.00 0.00 0.00 General Engineering Trading etc   0.00 0.00 0.00 Forgings   13.80 13.05 75.71   14.32 13.43 88.83 Projects (Capital Goods)   0.00 0.00 0.00 Others   7.55 -12.23 1,978.13   4.13 -8.75 1,287.88 Defence   3.08 11.02 -793.53   10.52 11.69 -117.17 PBT 100.00 429.40 365.82 17.38 100.00 1,612.89 1,438.99 12.08

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