Bharat Forge Q2 revenue dips by 4.7 per cent

The Bharat Forge in its second quarter results announced here on Wednesday said that its standalone revenue has reached Rs 867 crore, a decline of 4.7 per cent over the same quarter last year on the back of a 16.2 per cent drop in domestic revenues.

Domestic revenues declined by 16.2 per cent to Rs 400 crore on the back of sluggish automotive demand and a significant drop in sale to industrial sectors in India while export revenues recorded a marginal increase of 8.1 per cent to Rs 466 crore compared to Q2 FY 12 partially benefitting from better realisation "on account of rupee depreciation."

Standalone EBITDA got reduced by 5.1 per cent to Rs 207 crore while PBT before exchange gain and loss and exceptional item decreased by 6.9 percent to Rs 136.9 crore. PAT for the quarter marginally reduced by 3.4 per cent to Rs 102 crore compared to the corresponding quarter of the previous year.

Commenting on the results of the company B N Kalyani, chairman and and managing director, said, "The quarterly performance continues to be impacted by sluggish demand in the domestic market across automotive and industrial sectors. In an already weak global economic environment, further weakening of demand has become increasingly evident around the globe across both automotive and industrial sectors. All global original equipment manufacturers (OEM's ) are adjusting their production level to correct inventory levels leading to destocking of inventory across the pipeline. We expect to witness downward pressure due to decline in demand across auto and non-auto globally coupled with a sluggish domestic market in the coming 2 -3 quarters."

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