Tier 1 supplier sees robust PV demand from China, Europe and US but feels the pressure from domestic M&HCV market due to demonetisation, BS IV and GST impact.
24 May 2017 | 4848 Views | By Autocar Pro News Desk
Tier 1 supplier sees robust PV demand from China, Europe and US but feels the pressure from domestic M&HCV market due to demonetisation, BS IV and GST impact.
Bharat Forge today announced its financial results for the January-March 2017 quarter (Q4 FY2017) and FY2017, reporting standalone revenues of Rs ...
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Tier 1 supplier sees robust PV demand from China, Europe and US but feels the pressure from domestic M&HCV market due to demonetisation, BS IV and GST impact.
Bharat Forge today announced its financial results for the January-March 2017 quarter (Q4 FY2017) and FY2017, reporting standalone revenues of Rs 1,183 crore in Q4 2017 as against Rs 1,060 crore in Q4 2016, increase of 11.62 percent. Standalone profits before tax for Q4 2017 was Rs 253 crore, up 5 percent (Q4 2016: Rs 241 crore).
For the fiscal year 2016-17, the company’s revenues were down by 10.15 percent at Rs 4,066 crore as against Rs 4,525 crore for the previous year. Standalone PAT stood at Rs 585 crore, as against Rs 697 crore in FY2016, down by 16.13 percent.
Passenger vehicle demand saw revenues grow by 14.11 percent in FY2017, with robust growth in China, Europe and US.
According to the company, the domestic M&HCV industry had been largely volatile in FY2017, leading to a moderate revenue increase of 8 percent. While demand was robust initially, subdued demand in the second half was due to deferment of purchase on uncertainty related to the impact of GST and demonetisation. However, there was an uptick in demand towards the end of the fiscal led by pre-buying arising from the implementation of BS-IV emission norms from April 1, 2017.
The company expects M&HCV demand in FY2018 to be muted owing to the increase in prices of BS IV vehicles and the impending implementation of GST.
Bharat Forge’s consolidated revenues for FY2017 were Rs 6,598 crore compared to Rs 7,001 crore in FY2016, down 5.8%). Net PAT stood at Rs 697 crore compared to Rs 649 crore in FY2016, up 7.4%.
In international business, the company said it has secured orders worth $120 million spread across global markets and business verticals.