Balu Forge Q1 Net Profit Surges Over 100% to Rs 34.16 cr

Mumbai, Jul 30 (PTI) Precision engineering and manufacturing firm Balu Forge on Monday said its on-year net profit grew over two-fold to Rs 34.16 crore in the April-June quarter this year, driven by higher income.

The company had posted a net profit of Rs 16.67 crore in the April-June period of FY24.

The company said revenue from operations for the reporting quarter stood at Rs 175.3 crore, up 56 per cent from Rs 112.38 crore in the first quarter of the earlier fiscal, helped by focus on client addition and continued demand for the specialised engineering products.

The company's EBITDA (Earnings before interest, taxes, depreciation and amortization) grew by 97.31 per cent, while margins expanded by 516 bps from 19.48 per cent in Q1FY24 to 24.64 per cent in Q1FY25, on account of increase in scale of operations and increased demand for heavier products which tend to yield better margins, Balu Forge said.

"Our robust financial performance was an outcome of our dedicated strategy implementation focused on addition of new products into our portfolio, diversification of customer base and offering solutions across industries like power generation, construction, hydraulics, and wind energy," said Trimaan Chandock, Executive Director of Balu Forge India Ltd.

According to him, the Indian forging industry is undergoing rapid transition and transformation, with superior implementation of the China+1 strategy to de-risk supply chains.

He also said that the company is committed to expanding its capabilities through strategic investments in assets and the augmentation of its team to deliver top-quality, innovation-driven products.

"This approach positions us as a leading player in the market. Our dedication to sustainability and continuous improvement allows us to meet current customer demands while anticipating and shaping future industry needs," Chandock stated.