As industrial activities see sharp uptick, homegrown forged components maker logs over 300% jump in Q2 profit
The automobile industry has reported a surge in sales due to a rise in disposable income and also with the onset of the festive season. As a result of this there is a large increase in manufacturing activities and the foreclosure sector is increasing in demand. Also, the rise in metal prices in the domestic market has boosted the forging industry’s top line.
In particular, the domestic impoundment industry mainly caters to the automobile industry, which accounts for 60-70 percent of the impoundment production, according to a PTI report.
Taking a cue from the rise in demand, Balu Forge, a leading forging company in the country, reported a 382 percent YoY jump in profit after tax in the second quarter. The net profit was Rs 23.2 crore.
Income from operations rose 130 percent to Rs 139 crore in the quarter, led by higher demand across segments, it said in an exchange filing. The total revenue increased by 113 percent to Rs 143.2 crore.
The main reasons for growth were orders from the defense industry, railways and an increase in agricultural activities in Monon.
The reversal of the passenger and commercial vehicle markets in the post-pandemic years has resulted in great profitability in the industry.
Meanwhile, shares of Balu Forge on Tuesday settled in the green with gains of over 4 percent at Rs 225.40.
Latest Business News
Denial of responsibility! greenleaselibrary.org is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at email@example.com The content will be deleted within 24 hours.