Introduction
Bharat Forge Ltd has delivered a solid Q4 FY25 performance with sharp profit gains even as revenue dipped year-on-year. This update matters to investors looking for resilient industrial plays in a choppy macro environment. Let us unpack the numbers and see why margins stole the show. 🔍
Revenue Performance 🌟
- Revenue from operations stood at ₹3,852.06 crore.
- Quarter-on-quarter growth was a healthy 10.8%, signalling a demand pickup.
- Year-on-year revenue fell 7.5%, likely reflecting softer Class 8 truck volumes and defence order timing.
- Example: Export shipments and industrial orders appear to have filled the gap left by domestic truck sales.
Profitability Insights 📈
- Profit Before Tax jumped to ₹424.10 crore, up 22.2% QoQ but down 12.0% YoY.
- Net Profit rose to ₹282.64 crore, delivering a 32.8% sequential boost while easing 8.4% from last year.
- EPS at ₹5.92 gained 30.4% QoQ and even beat last year by 16.8%.
- The big driver was better cost absorption and lower losses from joint ventures.
Cost & Efficiency 🔧
- Raw material costs held steady as a percentage of sales.
- Employee cost inched up only marginally despite inflation pressure.
- Finance cost remained stable, containing leakage on the P&L.
- A small exceptional loss of ₹5.3 crore dented PBT but did not derail the quarter.
Strategic & Operational Highlights 🌍
- No major capex or dividend declarations in Q4. Full-year EPS reached ₹20.05.
- Management focus seems firmly on operational efficiency and deeper international reach.
- The sustainability of this margin recovery will hinge on further export wins and steady aftermarket demand.
Conclusion
Bharat Forge has proved that lean operations can deliver good profits even when top-line growth is muted. The strong sequential rebound in margins makes the stock worth watching as industrial demand shows signs of stabilising.