Bharat Forge Sees Profitable Growth Despite US Tariff Concerns

Bharat Forge has reported a significant 63% rise in its consolidated net profit, reaching Rs 284 crore for the June quarter. However, the Pune-based company is cautious about the outlook for its US export business following a recent tariff change. Despite a decline in total income to Rs 3,958 crore from Rs 4,158 crore previously, new orders worth Rs 847 crore were secured, including Rs 269 crore in the defence sector.

Chairman and Managing Director Baba Kalyani highlighted the challenges posed by the US tariff announcement and North American emission regulation changes. He emphasized the potential impact on the business outlook for the remainder of the fiscal year. The company is focusing on opportunities in relatively unaffected areas and cost optimization to mitigate operating leverage effects.

In the first quarter, Bharat Forge's US and European operations showed financial improvement, generating cash profits. A review of its European steel manufacturing operations is underway, expecting definitive actions by the year's end. The defense vertical's order book stands strong, with £9,463 crore contracted and more anticipated in this fiscal year. Meanwhile, Bharat Forge shares closed down by 1.94% at Rs 1,138.80 on the BSE.

(With inputs from agencies.)