Bharat Forge Limited (BFL) has seen increase in the machining mix in the overall turnover increase from 41% in FY11 to 44% in FY12. BFL further plans to increase the machining mix particularly in the non auto segment (as currently machining in non auto segment is only in the oil and gas segment). Increase in the machining which is a more profitable business would boost profitability for BFL.
BFL did not see benefit of rupee depreciation in the export realization in Q4 FY12 (realized rate of Rs48 to a dollar) as it takes forward covers for exports. However Q1 and Q2 FY13 are likely to see significant jump in export realizations on account of sharp depreciation in the rupee recently.
No new capex is planned for FY13. The total capex for next two years is pegged at Rs200 crores. FY 13 would see increased capacity utilization and debt reduction thereby improving the return ratios. Further BFL aims at improving profitability by offering more value added products.
The overseas subsidiaries witnessed improved profitability in FY12. EBIDTA margins of subsidiaries improved from 4.8% in FY11 to 5.5% in FY12. BFL expects further improvement in subsidiary performance in FY13.
BFL-Alstom JV recently got orders for supply of (2x660MW) turbine generator to NTPC worth Rs1570 crores. The company is likely to get orders for 3 more turbine generators from NTPC. The total order book for the JV would be about Rs4,000 crores. However the supplies would commence in 2014.
For the automotive segment, BFL sees flat growth for domestic MHCV’s industry in FY13. However BFL presence in the fast growing LCV segment (with supply to Tata Motors, Mahindra) would help mitigate slowdown in the MHCV segment. BFL is in talks with new players such as Ashok Leyland to increase presence in the LCV segment. BFL expects US automotive market to show strong growth in FY13. The European market would remain weak due to the looming debt crisis. The Chinese market has also slowed down particularly the CV segment.
BFL is seeing strong traction in the non automotive segment. The share of non auto revenues would continue to rise going forward. For FY13, BFL sees strong growth in the Railways (locomotive), Oil and Gas and the Construction equipment segment. Further, BFL plans to offer value added products in the non auto segment (Machined products) which would further boost revenues in the segment. Also BFL focus on new segments such as defense and the aerospace segment would drive revenues in the non auto segment.
At 12.35 pm, Bharat Forge was trading at Rs317.50 down by 0.36% with the volume of 16077 shares on BSE.
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BFL did not see benefit of rupee depreciation in the export realization in Q4 FY12 (realized rate of Rs48 to a dollar) as it takes forward covers for exports. However Q1 and Q2 FY13 are likely to see significant jump in export realizations on account of sharp depreciation in the rupee recently.
No new capex is planned for FY13. The total capex for next two years is pegged at Rs200 crores. FY 13 would see increased capacity utilization and debt reduction thereby improving the return ratios. Further BFL aims at improving profitability by offering more value added products.
The overseas subsidiaries witnessed improved profitability in FY12. EBIDTA margins of subsidiaries improved from 4.8% in FY11 to 5.5% in FY12. BFL expects further improvement in subsidiary performance in FY13.
BFL-Alstom JV recently got orders for supply of (2x660MW) turbine generator to NTPC worth Rs1570 crores. The company is likely to get orders for 3 more turbine generators from NTPC. The total order book for the JV would be about Rs4,000 crores. However the supplies would commence in 2014.
For the automotive segment, BFL sees flat growth for domestic MHCV’s industry in FY13. However BFL presence in the fast growing LCV segment (with supply to Tata Motors, Mahindra) would help mitigate slowdown in the MHCV segment. BFL is in talks with new players such as Ashok Leyland to increase presence in the LCV segment. BFL expects US automotive market to show strong growth in FY13. The European market would remain weak due to the looming debt crisis. The Chinese market has also slowed down particularly the CV segment.
BFL is seeing strong traction in the non automotive segment. The share of non auto revenues would continue to rise going forward. For FY13, BFL sees strong growth in the Railways (locomotive), Oil and Gas and the Construction equipment segment. Further, BFL plans to offer value added products in the non auto segment (Machined products) which would further boost revenues in the segment. Also BFL focus on new segments such as defense and the aerospace segment would drive revenues in the non auto segment.
At 12.35 pm, Bharat Forge was trading at Rs317.50 down by 0.36% with the volume of 16077 shares on BSE.
....more info