New Delhi: Auto components major Bharat Forge on Thursday posted a 33.91 percent increase in its net profit at Rs 234.45 crore for the first quarter ended June 30.
The company had reported a net profit of Rs 175.07 crore in the same period of the previous fiscal.
Total income during the quarter under review stood at Rs 1,513.91 crore. It was Rs 1,283.7 crore in the year-ago period, Bharat Forge said in a BSE filing.
The company said revenue from operations, part of total income, for the quarter ended 30 June, 2018 is not comparable with the corresponding period a year ago due to the implementation of GST since 1 July, 2017.
Bharat Forge Chairman and Managing Director BN Kalyani said the company has secured new business worth Rs 120 crore across domestic and export markets.
"As part of our focus on enhancing our presence in the light material space, the board has approved setting up of Aluminum Forging facility in BF PMT in Tennessee, US," he added.
This facility will be set up at a cost of $55 million and will address the needs of the North American car market, Kalyani said.
The plant will commence production in 2020, he added.
On the business outlook, Kalyani said the company expects to see demand sustaining at current elevated levels.
"While demand is extremely strong on the export front across sectors, domestic demand, especially, on the CV front could be volatile due to the recent regulatory change in axle load norms and the understanding of its impact on end demand," he added.
Shares of Bharat Forge were trading 1.94 percent down at Rs 627 on the BSE.
Updated Date: Aug 09, 2018 15:13:01 IST