Mumbai: Bharat Forge, the world’s second largest forgings maker, reported a 64% jump in April-June net profit as robust growth in the overseas markets and non-automotive segment pushed sales.
“Non-automotive business has grown more than 50% compared to last year and it continues to witness tremendous traction with good order flow,” chairman and managing director Baba Kalyani was quoted as saying in the statement.
“...The non-auto business has brought about a distinct change in customer base of Bharat Forge with many marquee names added in the past few years.”
The Pune-based firm’s net profit in April-June was Rs974.2 million and net sales Rs858 crore rupees.
At 10:54 am, shares of Bharat Forge, which rose over 6% on strong quarterly numbers, were at Rs283.60, up 5.15% in a firm Mumbai market.
While revenue from exports rose 67.1% to Rs381 crore across both automotive and non-automotive segments, overseas revenue grew 38.1% to Rs711 crore on strong demand from automobile sector, it said in a statement.
The company has operations in Europe, China and the US.
In comparison, growth in domestic revenue was 18.6% to Rs477 crore. EBITDA margin for the quarter, however, was at 25.6%.
Bharat Forge has been increasing focus on non-automotive business and has formed joint ventures with Alstom for supercritical turbine generators and NTPC for high pressure pumps, valves and pipings for the power sector.
Bharat Forge had earlier said it expected revenue from non-automotives to be over 40% of the total by the end of FY12.
The fast growing auto ancillary sector contributes some 2.3% to India’s gross domestic product (GDP) and is expected to clock sales of $30 billion in 2010-11.
The industry’s apex body the Automotive Component Manufacturers Association expects turnover to touch $110 billion by 2020.