Balu Forge Q4 PAT jumps 123%; EBITDA margin expands sharply

Profit before tax stood at Rs 74.06 crore, up 115.1% from Rs 34.43 crore in Q4 FY24. EBITDA for the quarter rose sharply to Rs 75 crore, reflecting a YoY growth of 118.1%, while EBITDA margin improved by 647 basis points to 27.8%.

For the full financial year, the company posted a 65% rise in revenue to Rs 924 crore, up from Rs 560 crore in FY24. Net profit for FY25 came in at Rs 204 crore, up 118% from Rs 93 crore in the previous year. FY25 EBITDA jumped 110.8% to Rs 251 crore.

Operating cash flow for FY25 rose 566% to Rs 148 crore, driven by robust EBITDA growth and improved receivables management. The company ended the year with a net cash position of Rs 60 crore. Total debt stood at Rs 36 crore, with cash and equivalents at Rs 96 crore.

Balu Forge continued its focus on capital efficiency, with the debt-to-equity ratio improving significantly to 0.03x from 0.09x a year ago. Working capital days reduced to 104 from 129, reflecting better inventory and receivables control. ROCE rose to 30.1%, aided by higher asset utilization and a strategic shift towards high-margin product segments.

The company increased its forging capacity to 100,000 TPA, with further expansion underway. Growth was supported by robust demand from defense, aerospace, and railways'sectors the company is increasingly targeting.

Trimaan Chandock, executive director of BFIL, stated, 'Our revenue from operations for FY25 reached Rs. 924 crore, marking the highest revenue in the company's history. This reflects the strong growth of 65.0% compared to revenues of Rs 560 crore in FY24. In Q4FY25, we delivered revenues of Rs 270 crore, driven by steady demand in our core business, along with significant contributions from emerging sectors such as defense, aerospace, and railways.

For the full year, our EBITDA grew by 110.8% to Rs 251 crore, leading to a significant improvement in margins, and profit after tax accelerated to Rs 204 crore, further reflecting our operational efficiency and strong execution. This performance underscores our ability to scale operations, leverage manufacturing capabilities, and diversify successfully across industries.

In FY25, we made significant CAPEX investments in expanding our manufacturing capabilities and upgrading our technology to better serve critical sectors such as defense, aerospace, and railways. These strategic initiatives are set to be fully commissioned in the first half of FY26 and are poised to deliver significant results in the coming years, positioning us to capitalize on emerging growth opportunities.

Looking ahead, we remain optimistic about the growth prospects for FY26. Our order book is growing, diversified, and high quality, with the company well-positioned to capture further opportunities in high-value, high-margin sectors. Our focus on innovation, technological upgrades, and expanding our talented team of engineering professionals will continue to be the driving force behind our long-term growth. We are confident that our ongoing investments in technology and capacity will further strengthen BFLL's position as a leading player in the precision machining industry.'

Meanwhile, the board has recommended a dividend of Rs 0.15 per equity share of face value Rs 10 each for FY25.

Balu Forge Industries is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components. It has the capability to manufacture components conforming to the New Emission Regulations & the New Energy Vehicles.

Shares of Balu Forge Industries rose 0.37% to Rs 620.65 on the BSE.

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