Bharat Forge Q2 Results Review - Outlook Overall Is Stable To Positive: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Bharat Forge Ltd.'s Q2 FY23 results were weak as Ebitda/adjusted profit after tax miss our estimates by ~10%/~12% respectively. Cost headwinds in overseas business as well as raw material (gross margins contracted 310 bp QoQ at 55.6%) reflected in profit and loss as despite ~6% revenue growth QoQ, Ebitda declined ~1.6% to Rs 4.5 billion (our estimate: Rs 5 billion) with margins at 24.3% (our estimate: 26.6%). Adjusted for late delivery fee of Rs 130 million for defense business (one‐ off), margins are at 25%. The company has reported ~6% QoQ/7% YoY growth in tonnage at ~61,100. Also, key positives going forward will be-continues ramp‐up in recent acquisitions such as JS Auto cast (guided revenue growth more than 25% and double digit margins over two‐three years), FAME 2 approval for Tork EV motorcycles,defense revenues expectation of Rs 8‐10 billion (versus Rs 3‐4 billion). The management has hinted towards sustenance of healthy demand momentum across segments going forward led by industrial and passenger vehicle (auto) while Europe (commercial vehicle) to remain stable. This we believe, should help Bharat Forge navigate inflationary pressure and drive gradual margins expansion over FY23‐25E. .Click on the attachment to read the full report:.Bharat Forge Q2 Results: Profit Misses Estimates On High Costs .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bharat Forge Q2 Results Review - Outlook Overall Is Stable To Positive: Yes Securities

The management has hinted towards healthy demand momentum across segments led by industrial, PV while Europe (CV) to remain stable

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