Bharat Forge Ltd today announced its Q3 results with standalone revenue at Rs. 672.6 crores, a decline of 28.5% over the same quarter last year on back of 33.1% drop in export revenues.
The demand drop coupled with inventory destocking at OEM level led to decrease in capacity utilization in Q3 FY13. We unde rtook manufacturing cuts to reduce inventories and match our production levels with the new demand environment.
Domestic revenues declined by 24.0% to Rs 362.1 crores on back of continued slump in automotive demand and drop in sale of components to the ind ustrial sectors in India.
Export revenues declined by 33.1% to Rs 310.5 crores compared to Q3 FY12 on back of global decline in demand coupled with production cuts and block closure by OEM to avoid pile up of inventory.
Standalone EBITDA declined by 42.0% to Rs 138.7 crores while PBT before exchange gain/ (loss) and exceptional it em decreased by 60.6% to Rs 64.4 crores. PAT for the quarter reduced by 53.9% to Rs 47.5 crores compared to the corresponding quarter previous year.
The non-automotive business, which has been a key growth driver over the past 2-3 years was also impacted by reduction in demand globally for infrastructure related products & solutions.
Commenting on the results of the company Mr. B N Kalyani, Chairman & Managing Director said “On the back of continued weak and uncertain macroeconomic fundamentals globally, the company witnessed a sharp drop in demand across all sectors, customers & geographies in the export market in addition to the continued weakness in the domestic market.
We have initiated series of measures aimed at tight cost control and productivity improvements which has given some benefit in the quarter but we expect the full benefit to flow in the coming quarters. The overall macro environment is volatile with still a lot of uncertainty. However, at this point we expect demand in the 4th quarter to continue at the same level as the previous quarter but still lower year over year” he added.