February 13, 2025
New Delhi, India
Interim Dividend
Bharat Forge Ltd. announced an interim dividend of ₹2.50 per share alongside its Q3 FY25 results, despite reporting weak financial performance in the quarter.
Dividend Details
- Dividend Amount: ₹2.50 per equity share (125% of face value ₹2)
- Record Date: February 18, 2025 (Tuesday)
- Payment Date: March 12, 2025 (Wednesday)
Eligible shareholders, listed in the company’s records by the record date, will receive the dividend by the payment date.
Q3 FY25 Earnings Overview
- Net Profit: ₹346 crore, down 8.4% YoY (₹377.8 crore in Q3 FY24).
- Revenue: ₹2,095.9 crore, a 7.4% YoY decline (₹2,263.3 crore in Q3 FY24).
- EBITDA: ₹609.7 crore, down 8% YoY (₹663 crore in Q3 FY24).
- EBITDA Margin: 29.1%, down 20 bps YoY (from 29.3%).
Key Challenges
- Weak EU Demand: Export revenues declined due to sluggish demand in European markets.
- Lower Defence Sales: Defence product sales decreased both sequentially and YoY.
Brokerage Outlook
Nuvama Institutional Equities revised Bharat Forge’s FY25–27E EBITDA estimates downward by up to 11%, citing:
- Weak core segments (CVs, construction equipment, tractors).
- Limited revenue growth prospects (7% CAGR expected).
- Subsidiaries likely to remain in losses.
The firm maintained a ‘Hold’ rating and lowered its target price from ₹1,420 to ₹1,250.
Market Reaction
At 10:35 AM, Bharat Forge shares were trading at ₹1,085.30 on the BSE, down 1.83%.
Investors remain cautious as the company navigates global demand slowdowns and domestic sectoral challenges.
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