Bharat Forge

“And we expect that this will again continue growing to close to double of this amount and as well as get higher margins.”

“In terms of outlook, I would expect second half to be stronger than first half.”

“our goal is to take this towards double-digit in the next 2 years, EBITDA”

“Production trials should start by, you know, January, February, March for the first two assets and then towards the middle of the year for the third asset and end of the year for the last asset.”

“In fact, we are setting up a new manufacturing facility that is entirely dedicated towards aerospace and it's pretty much 60% sold out and that will start from middle of next year.”

“So that investment itself should be able to cater to these 2-3 sectors at least for the next 2-3 years.”

“I would say at least one gun, you know, I would say 120 guns to 150 guns a year.”

“Once the new forging facilities in Baramati come online, it should give us a lot of headroom for growth in our non-automotive business, especially aerospace, semiconductor, industrials, because, we have been running very close to full for the last few quarters.”

“The outstanding unexecuted order book for defense stands now at INR10,950 crores as of September.”

“We have also received new orders worth INR2,100 crores during first half of this year across our India manufacturing businesses.”

“We anticipate a very strong accretion to our order book in the second half based on whatever, you know, business and let's say programs that we have won and that needs to get converted into contracts and placed on us.”

“So, that is like a USD100 plus million business over life cycle, 100 million, 120 million.”

“It depends on we have to supply 184 guns. So, you know, in the first year it will be a ramp up, second year will be more steady, third year will be steady. So, in 4 years, I think we should be able to deliver this.”

“The export CV business recorded its highest revenue driven by volume growth and some market share gains and ramp-up of new businesses.”

“JS Auto Cast, which is a casting business saw a revenue growth of 16% to reach INR220 crores and EBITDA grew by 35% translating into EBITDA margins of 14.2%.”

“Europe saw revenue of INR931 crores and EBITDA of INR29 crores resulting in a margin of around 3.1%. US revenues were at INR476 crores an EBITDA was about INR6.7 crores negative for the quarter.”

“So, it's across the board. It is our aerospace business, it is our industrial exports, it is some of the semicon business, it is the CV business, it is our pass car exports, all of these, marine and then JSA and K-Drive, all of it.”

“supplying into off-highway and that is the area where we have open game, we can export and play in that market anywhere in the world.”

“So, from our point of view, right now, all our customers are talking to us for actually blocking capacity for the next, I would say, 18 to 20 months in a row and that's at high level.”

“And the indication that we have from all our customers is that production level will in fact continue to be very stable and in fact be a little stronger than what it is today.”

“EBITDA stood at INR655 crores, up 20% Y-o-Y, resulting in EBITDA margin of 25.9%.”

“The profitability bore the impact of escalating freight, energy cost and other input cost, which we are recovering from our customers, but there is always a lag.”

“And also there is an impact due to inflation, which has a optical impact of almost 0.4% on the margins, which is more of a optical rather than actual.”

“EBITDA was at INR778 crores, which was up by about 9% vis-a-vis last year, translating EBITDA margin of around 16%.”

“Whatever is manufactured in India is bought in India, the steel. Okay? And that follows global price trends.”

“The console balance sheet remains strong with net debt-to-equity ratio at 0.45x. Console cash stands at around INR4,158 crores post QIP fundraise.”

“So the business that we have acquired through these castings and K-Drive will not only allow us to grow our revenues and our profitability, but also get us into sectors such as the pass car and the utility vehicle and pickup truck market that we were not existing in in a big way.”

“Q2 standalone also included an exceptional item of around INR20 crores towards the consultancy charges for our legal and consultancy charges for our restructuring of steel business in Europe, CDP, which is on track as per plan and it will get concluded by mid of next year.”

“You know, we had a, let's say, we had some one-times in the US steel subsidiary because of breakdowns. On the aluminum side, you know, we have a cost issue because of the raw material costs.”

“CQB, we have not got the bulk production clearance yet. Okay. Once that happens, in 4 months to 6 months, we should be able to start delivery.”

“Our restructuring business for CDP is on track and as I mentioned we will estimate to close, conclude the same by middle of next year.”

“For certain sectors, we obviously have a non-compete with our, the company we bought from, but there are plenty of sectors that they didn't play in.”

“Because as I mentioned, please remember, it depends on the absorption rate of the customer because they have to train all their battalions on these new guns and then they have to decide where to deploy them.”

“On a Q2 FY27 standalone revenues were at INR2,526 crores, which was up by almost 30% Y-o-Y.”

“Consolidated revenue for the quarter stood at INR4,870 crores, which was up 21%.”

“On the defense side, you know, we have received the bulk production clearance for ATAGS. This has been delayed, but it's finally been done.”

“The order has not been deferred, the production approval didn't get deferred, it got delayed. So, we were waiting for the production approval, which has now come through and that should start shipment from Q1 of ‘27, ‘28.”

“So, the order is taken by Bharat Forge. We will novate the order later, but right now the deliveries will happen through Bharat Forge.”