Bharat Forge share price surges over 7% after Q4 FY21 results announcement - KNOW DETAILS HERE

Bharat Forge share price today is Rs 736, up Rs 40 or 5.7%. Bharat Forge made a life high of Rs 749 today. The market cap of Bharat Forge is Rs 34250 cr. In Q4 FY21, Bharat Forge Total Revenues grew by 26.2% on back of a strong 42.9% growth in export revenues and 9.6% growth in domestic revenues. For the full year FY 2021, Bharat Forge recorded total revenues of Rs 36516 mn, a decline of 20% as compared to FY 2020. The EBITDA in Q4 FY21 has grown by 43.5% to Rs 3332 mn. EBITDA margins at 25.5% have expanded by 310 bps as compared to Q3 FY21. PBT before Exchange gain/ (loss) for Q4 FY21 at Rs 2509 million has registered a growth of 73.9% as compared to Q3 FY21. Class 8 Heavy trucks in North America and 16T & above Heavy Duty Trucks in Europe have seen sharp increases in demand. Demand outlook provided by the OEM's is quite robust going ahead.

Baba Kalyani, Chairman & Managing Director said that "The year has ended on a strong note with sharp recovery visible in all our end markets. Q4 FY21 has witnessed a 26.2% growth in sales on back of 43% growth in exports, which is now witnessing growth in all key segments. Despite cost inflationary pressures, EBITDA% has increased by 310 bps. The balance sheet at the end of FY21, continues to be robust with a significant level of liquidity. Operating cash flows were strong in FY21 and will improve further in FY22. Return ratio will normalize towards the 20% range with improvement in asset utilization in the coming years. We recently secured an order from the Government of India for development & supply of components/products and the same shall be executed by end of September 2021. As we enter FY22, we are seeing robust demand continue in major segments in the export business. The lockdown in India to curtail the spread of Covid has clearly had an impact on demand & production in the automotive sector. We are optimistic that this weakness is temporary in nature and we will witness growth in India as business activities normalize.

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Bharat Forge Management explains that Enhancement of safety norms, increase of axle load norms, GST, emission norms change from BS Ill to BS VI within a short span of time resulting in increased Total Cost of Ownership were some of the headwinds the industry has had to encounter. Although the near term outlook is negative due to the lockdown to curb the 2 nd Covid 19, the medium to long term outlook is very encouraging especially for the M HCV sector. The focus on infrastructure spending, government's focus on increasing manufacturing as % of GDP from 16% to 25%, PLI schemes, AtmaNirbharta policy and the scrappage policy coupled with investment in road infrastructure points to a long runway for the MHCV sector.

Bharat Forge said that they will remain focused on developing and winning new products & pipeline including new customers in the Industrial segment- both in India and globally.