Bharat Forge Q4 Review - Valuations Overshadow Positive Demand Outlook: Prabhudas Lilladher

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Prabhudas Lilladher Report

Bharat Forge Ltd.'s Q4 FY21 results beat estimates on all fronts as revenue/Ebitda/adjusted PAT came higher by 10%/23%/43% over primary loss expectancy.

This was led by:

1. 39% year-on-year growth in tonnage (due to strong traction in auto demand for both domestic/exports).

2. 7% year-on-year growth in realisations (better mix and RM inflation price through).

3. Cost control.

Outlook for auto segment remained strong, benefitted by visible growth in Class 8 truck demand in FY22 along with ramp-up in domestic CVs/PVs.

This coupled with healthy outlook for industrial (with improvement in global Oil & Gas), has placed Bharat Forge better than previous cycles.

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