Balu Forge Industries Ltd (BFIL) has announced its financial results for the first quarter of the fiscal year 2025, showcasing a remarkable performance. The company's revenue surged by 55.99% year-on-year to INR 1,753.09 million, compared to INR 1,123.85 million in the same quarter last year. This impressive growth is attributed to BFIL's consistent focus on expanding its client base and the continued demand for its specialised engineering products.
Profit After Tax (PAT) saw an extraordinary increase of 104.96%, reaching INR 341.67 million, up from INR 166.70 million in Q1FY24. The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also grew significantly by 97.31%, with margins expanding from 19.48% to 24.64%. This growth in EBITDA and margins is due to the increased scale of operations and the higher demand for heavier products, which generally offer better margins.
The board of directors has recommended a final dividend of 1.50% per equity share of INR 10 each for the financial year 2023-24, reflecting the company's strong financial position.
Commenting on the Q1FY25 performance, Trimaan Chandock, Executive Director of BFIL, expressed satisfaction with the robust revenue growth and improved margins. He highlighted the company's strategic focus on diversifying its product portfolio and customer base, catering to industries such as power generation, construction, hydraulics, and wind energy. This diversification aligns with the broader industry shift, driven by the China+1 strategy to mitigate supply chain risks.
In addition to financial achievements, the quarter saw BFIL making significant business advancements. The company acquired three state-of-the-art forging production lines with a capacity to produce 72,000 tonnes of forged products. This acquisition includes advanced equipment such as a 16-tonne closed die forging hammer, a 10-tonne closed die forging hammer, and an 8,000-tonne capacity mechanical press. These new assets enhance BFIL's research and development capabilities, allowing the production of complex products from various alloys, including aluminium and titanium. The integration of these new capabilities will enable BFIL to deliver comprehensive solutions, leveraging Industry 4.0 practices to ensure high manufacturing efficiency.
Furthermore, BFIL has proposed a fundraise of INR 496.80 crore to bolster its manufacturing capacity and enhance its ability to contribute to India's self-reliance in the defence, railways, and aerospace sectors. This initiative aligns with the vision of a developed India, as outlined by the Honourable Prime Minister, and aims to procure machinery for producing large railway wheels, thereby strengthening BFIL's market position.