Sharp Drop In Profits Due To Higher Costs
The sharp contraction in margin was due to higher raw material, finance, and employee costs. Total expenses rose 52% year-on-year, compared to a 40% rise in revenue from operations.
The overseas operations posted an Ebitda loss of Rs 62 crore, due to ramp-up-related issues with the new aluminium forging capacities in Germany and the U.S., the company said in an update.
“They continue their journey towards profitability with a focus on improving capacity utilization, cost optimization, price increases, and cost compensation from customers,” it said.
Shares of Bharat Forge were trading 3% lower as on 1:56 p.m., against a 0.9% rise in the benchmark Nifty 50.