Bharat Forge, the auto and defence component manufacturer, witnessed a surge of over 6% in its share price on the back of positive fourth-quarter results for the financial year 2023-24.
The company reported a significant 59.3% year-on-year rise in net profit for Q4FY24, reaching Rs 389.6 crore, compared to Rs 244.5 crore in the same period last year.
Total revenue for the reporting period jumped 16.6% to Rs 2,328.5 crore, up from Rs 1,997.3 crore in the previous fiscal year. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) for Q4FY24 stood at Rs 659 crore, an increase from Rs 522.8 crore in the previous fiscal year. Notably, the margin for the reporting period also grew to 28.3%, up from 24.4% in Q4FY23.
Bharat Forge’s management expressed optimism about the current fiscal year, stating that they expect FY25 to be a year of growth driven by the defence and industrial casting business. They also anticipate continued improvement in capacity utilization of the overseas business.
As of 1:35 pm the shares of Bharat Forge were trading 6.84% higher at ₹1,324.75 on NSE
The company’s Q4 commentary highlighted that the turnaround of its overseas business and margin improvement will lead to strong profit growth in FY25.
In a BSE filing, the company’s board said, “Recommended a final dividend of Rs. 6.50 per equity share of the face value of Rs 2/- each (at the rate of 325%) for the financial year ended March 31, 2024, subject to the approval of the Members of the Company at the ensuing Annual General Meeting. The final dividend for the financial year ended March 31, 2024, if approved by members, will be paid on or after August 14, 2024.”
