Balu Forge has announced its quarterly earnings in which it informed exchanges that its on-year net profit grew over two-fold to Rs 34.16 crore. The surge in profit is driven by higher income.

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The precision engineering and manufacturing firm posted a net profit of Rs 16.67 crore in the April-June period of FY24.

Balu Forge has an existing capacity of 18,000 TPA of forged/machined components. BFIL had further acquired specialized assets with an installed capacity of 14,000 TPA which will be installed and commercialized by Q2FY25 increasing the total production capacity of precision-engineered components to ~32,000 TPA.

The company said revenue from operations for the reporting quarter stood at Rs 175.3 crore, up 56 per cent from Rs 112.38 crore in the first quarter of the earlier fiscal, helped by focus on client addition and continued demand for the specialised engineering products.

The company's EBITDA (Earnings before interest, taxes, depreciation and amortization) grew by 97.31 per cent, while margins expanded by 516 bps from 19.48 per cent in Q1FY24 to 24.64 per cent in Q1FY25, on account of an increase in scale of operations and increased demand for heavier products which tend to yield better margins, Balu Forge said.