Bharat Forge says past quarter toughest in decade
Friday - November 8, 2019 3:20 pm , Category : BUSINESS
Mumbai, Nov 8 (IANS) For the Pune-based manufacturing major Bharat Forge, the business environment in the past quarter has been the "toughest period witnessed by the company in the decade".The company which produces a range of components for the automotive and non-automotive sector said that sluggish macroeconomic environment, weak demand across sectors and introduction of BS VI emission standards led to the decline in demand.Bharat Forge scrips on the BSE slipped over 8 per cent after the company on Friday reported a profit before tax (PBT) decline of 27 per cent year on year (YoY) to Rs 251 crore for the quarter ended September.Beside, in its foward looking statement, the company said that "given the prevailing environment in India and the slowdown in North America & Europe, we expect H2 FY20 to be lower than H1 FY20".Without mincing words B.N. Kalyani, Chairman & Managing Director said: "The quarter gone by has been the toughest period witnessed by the company in this decade. The sluggish macroeconomic environment in India resulting in weak demand across sectors coupled with automotive OEM's need to destock ahead of introduction of BS VI emission standards led to demand declining continuously through the quarter". Kalyani said that weakness in the economy resulted in 35.6 per cent de-growth in domestic revenues and a decline of 18.1 per cent in the export revenues, "chiefly on account of decline in O&G revenues". However, the company also said that amid this weak environment, the passenger vehicle business stands out across both domestic and export markets with strong outperformance against underlying demand. "The PV business has grown by 25 per cent on sequential basis and 20.9 per cent compared to the same quarter last year," the company said.