Shares of Bharat Forge plunged more than 10% to an intra-day low of Rs 1,131 on NSE as of 2:43 pm. The sudden decline in share value was attributed to the management’s revision of the growth outlook for both Q4 and the entire FY25.
Baba Kalyani, Chairman and Managing Director of Bharat Forge, stated, “Looking ahead in Q4 and further into FY25, we expect the growth momentum to moderate in both the domestic and export markets across industries. Our endeavor will be to outperform the market driven by our diversified business mix.”
The primary reason cited for the decline in share prices is the prediction of a slowdown in growth momentum, affecting both domestic and international markets.
Despite the challenging outlook, the management reported a robust performance during the quarter, with sales growing by 15.9% to Rs 2,263 Crores and EBITDA increasing by 30.9% to Rs 645 Crores. EBITDA margins at 28.5% expanded by 330 bps, attributed to a favorable product mix and a focus on cost optimization.
During the quarter, Bharat Forge secured new business worth Rs 550 Crores across automotive, industrial, defense, aerospace, and castings (ferrous & aluminum). In overseas operations, operational parameters in the Aluminum business in Europe have shown improvement, and a similar trend is expected in the US plant soon.
