Did Bharat Forge Experience a Decline in Q4 Net Profit and Revenue?
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Synopsis
Bharat Forge has reported a disheartening decline in its Q4 earnings, with a notable drop in both net profit and revenue. This trend reflects the ongoing challenges faced by the company in the commercial vehicle sector, particularly in overseas markets. Explore the implications of these results for the future of Bharat Forge and the auto components industry.
Key Takeaways
- Net profit fell by 11.6% to Rs 345.6 crore.
- Revenue from operations decreased by 7.1% to Rs 2,163 crore.
- EBITDA dropped 7% to Rs 616.7 crore.
- Final dividend of Rs 6 per equity share proposed.
- Defense orders valued at Rs 9,420 crore.
Mumbai, May 8 (NationPress) - The renowned auto components manufacturer Bharat Forge disclosed disappointing results for the fourth quarter (Q4) of FY25, showing a decline in both net profit and revenue on a year-on-year (YoY) basis.
The consolidated net profit decreased by 11.6%, amounting to Rs 345.6 crore for the quarter that ended on March 31, compared to Rs 389.6 crore during the same timeframe last fiscal year, as per their stock exchange announcement.
Revenue from operations also saw a reduction of 7.1% YoY, dropping to Rs 2,163 crore from Rs 2,329 crore in Q4 FY24. This reflects challenging demand conditions, especially in international commercial vehicle (CV) markets.
Bharat Forge’s earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 7%, landing at Rs 616.7 crore in Q4, down from Rs 659 crore in the same quarter last year.
Nevertheless, the EBITDA margin for the quarter was reported at 28.5%, slightly up from 28.3%% a year prior.
The company's board has proposed a final dividend of Rs 6 per equity share for FY25, pending approval from shareholders at the forthcoming Annual General Meeting (AGM).
If approved, the dividend will be disbursed on or after August 12, as stated in their exchange filing.
As of March 2025, Bharat Forge’s defense order book was valued at Rs 9,420 crore. Throughout FY25, the group secured orders totaling Rs 6,959 crore, with defense accounting for 70%.
Following the Q4 earnings report, Bharat Forge's shares saw a 2.25% decrease on the National Stock Exchange (NSE), trading at Rs 1,115 each on Thursday.
The company remarked that FY25 was stagnant for the commercial vehicle sector, attributing it to flat volumes in the US and ongoing economic challenges in Europe.
“Looking forward to FY26, Bharat Forge anticipates a decline in CV performance due to potential delays in emission regulation changes in North America and ongoing weakness in the European market,” the company noted.
Point of View
It is essential to present a balanced perspective on Bharat Forge's recent financial results. The decline in net profit and revenue reflects broader market challenges, particularly in the commercial vehicle sector. While the company's defense orders are promising, the anticipated setbacks in FY26 warrant attention. We remain committed to delivering factual analysis, focusing on the implications for stakeholders and the industry at large.
NationPress
24/05/2025
Frequently Asked Questions
What caused Bharat Forge's decline in Q4 earnings?
Bharat Forge's decline in Q4 earnings can be attributed to subdued demand in the commercial vehicle sector, particularly in overseas markets like the US and Europe.
What is Bharat Forge's EBITDA for Q4 FY25?
Bharat Forge's EBITDA for Q4 FY25 stood at Rs 616.7 crore, reflecting a decrease of 7% from the previous year's corresponding quarter.
What dividend has Bharat Forge proposed for FY25?
Bharat Forge has proposed a final dividend of Rs 6 per equity share for FY25, pending approval from shareholders.
What does the future look like for Bharat Forge?
Looking ahead to FY26, Bharat Forge anticipates potential challenges in CV performance due to delays in emission regulation changes in North America and ongoing economic issues in Europe.
How did Bharat Forge's shares react to the Q4 earnings announcement?
Following the Q4 earnings announcement, Bharat Forge's shares fell by 2.25% on the National Stock Exchange (NSE).
