Revenue improved 73 per cent year-on-year to Rs 2,386 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 207 per cent to Rs 510 crore while the EBITDA margin widened by 931 basis points to 21.4 per cent. One basis point is 0.01 per cent.
BN Kalyani, the chairman of Bharat Forge said that demand remained robust across most of the company’s end markets but the latter part of the quarter was impacted by semiconductor shortage and logistics-related issues.
“Looking ahead into Q3 FY22, end demand continues to remain robust across segments, but to what extent the semiconductor and other supply chain issues will weigh in on OEM’s ability to produce is uncertain,” Kalyani said in a statement. OEM refers to the original equipment manufacturers, like automakers.
He further said that roughly 75 per cent of the company’s business which includes the domestic markets and the industrial segment in export markets “will continue to do well while the performance of the export automotive business will in all probability witness a decline.”
The stock of Bharat Forge declined 1 per cent to close at Rs 774.7 on the BSE on Friday compared to a 1.28 per cent growth in benchmark Sensex.
