Fwd: PL First Cut - BHARAT FORGE 2QFY24

PL First Cut – BHARAT FORGE 2QFY24 – Himanshu Singh – Research Analyst, Prabhudas Lilladher Pvt Ltd

BHARAT FORGE [BHFC IN | TP: INR955 | BUY]

First Cut 2QFY24 results – Rvenue meets expectations, EBITDA beat of 3%

Standalone revenue grew by c21% YoY to Rs. 22.5bn and came in line of our estimate (Rs. 22.3bn) and consensus estimates (Rs. 20.2bn). Standalone EBITDA margins at 27.4% were slightly higher than our (26.8%) and higher than BBGe (26.8%). Gross margin was lower QoQ 240bps and came lower than our expectation, while strong control on employee cost and other expenses the margin difference. Lower than expected other income and higher interest expenses led largely in line PAT versus PLe and came c5% higher than BBGe. On consolidated levels revenue and margin was slightly miss due to summer holidays in Europe.