Precision engineering and manufacturing company Balu Forge Industries on Monday reported a 107% year-on-year jump in its consolidated net profit for the quarter ended September 30, 2024 at Rs 48 crore which was up from Rs 23 crore reported by the company in the year ago period.
The company in which ace investor Ashish Kacholia has a 1.82% stake, reported a revenue growth of 60% YoY at Rs 223 crore in Q2FY25 compared to Rs 139 crore in Q2FY24 because of the constant focus on client addition and continued demand for the specialized engineering products.
The company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 116.5% and margins expanded by 763 bps from 21.6% in Q2FY24 to 29.3% in Q2FY25 owing to increase in scale of operations and increased demand for heavier products which tend to yield better margins.
Profit after tax (PAT) margins improved by 489 bps from 16.7% in Q2FY24 to 21.6% in Q2FY25.
“The Indian precision engineering industry is on the verge of its next significant growth phase, driven by a rapid transformation as companies globally embrace the China+1 strategy to mitigate supply chain risks," Balu Forge's executive director Trimaan Chandock said, commenting on the earnings.
"This strategic shift, alongside broader industry changes, unlocks a wealth of opportunities and paves the way for long-term growth. To fully leverage this momentum, we are making substantial investments in strengthening our capabilities, positioning ourselves for strong, positive outcomes in the near future," he said
The new unit progress at Belgaum continues in full swing and the company is on the verge of commercialising the first phase of the new manufacturing campus and it will drive the next leg of growth, he added.
Balu Forge is engaged in the manufacturing of fully finished and semi-finished forged components.
The stock has been a multibagger delivering nearly 200% returns in the last 1 year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The company in which ace investor Ashish Kacholia has a 1.82% stake, reported a revenue growth of 60% YoY at Rs 223 crore in Q2FY25 compared to Rs 139 crore in Q2FY24 because of the constant focus on client addition and continued demand for the specialized engineering products.
The company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 116.5% and margins expanded by 763 bps from 21.6% in Q2FY24 to 29.3% in Q2FY25 owing to increase in scale of operations and increased demand for heavier products which tend to yield better margins.
Profit after tax (PAT) margins improved by 489 bps from 16.7% in Q2FY24 to 21.6% in Q2FY25.
“The Indian precision engineering industry is on the verge of its next significant growth phase, driven by a rapid transformation as companies globally embrace the China+1 strategy to mitigate supply chain risks," Balu Forge's executive director Trimaan Chandock said, commenting on the earnings.
"This strategic shift, alongside broader industry changes, unlocks a wealth of opportunities and paves the way for long-term growth. To fully leverage this momentum, we are making substantial investments in strengthening our capabilities, positioning ourselves for strong, positive outcomes in the near future," he said
The new unit progress at Belgaum continues in full swing and the company is on the verge of commercialising the first phase of the new manufacturing campus and it will drive the next leg of growth, he added.
Balu Forge is engaged in the manufacturing of fully finished and semi-finished forged components.
The stock has been a multibagger delivering nearly 200% returns in the last 1 year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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