Bharat Forge posted a very good performance reported for Q1FY15. On a 25% (YoY) rise in total sales at Rs.988 crore, the company clocked a 60% jump in its net profit at Rs.145 crore. Operating expenses rose 17% and it ended the quarter with an EBITDA of Rs.291 crore, up 48% with EBITDA margins showing a major improvement – up from 24.8% to 29.4%.  The company has stated that improvement in sales improvement plus favourable product mix resulted in improvement in and robust cash flow.

Exports continue to remain the mainstay of the company as this robust growth in sales was led by a 76% growth in exports to North America, with a 10% rise in domestic revenue. Currently, exports constitute 55% of the company’s total revenue earned. The company’s gameplan of moving from auto sector to non-auto sector is working very well with non-auto revenues in current Q1 at 46% of total revenue, up from 36% in previous Q1.

The company expects Q2 to be equally good, with once again exports to lead growth. Domestic revenue growth is estimated to pick up from H2. It expects to double its revenue by FY18. It expects margins to be around 28-29% in current fiscal.