Pune: Balu Forge Industries Ltd. (BFIL) has announced its financial results for the second quarter of FY25, reflecting a robust performance across key metrics.
The company reported a 106.9% year-on-year (YoY) growth in profit after tax (PAT) to ₹481.4 million, along with a 60.1% YoY increase in revenue, reaching ₹2,228.7 million for the quarter ending September 30, 2024.
The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) saw a 116.5% surge, standing at ₹652.2 million, as margins expanded by 763 basis points to 29.3%, up from 21.6% in Q2FY24.
This growth was driven by increased scale of operations and heightened demand for heavier engineering products, which deliver stronger margins.
BFIL’s Executive Director, Trimaan Chandock, highlighted the global industry's shift towards the China+1 strategy to mitigate supply chain risks, which has opened up new growth opportunities for Indian companies.
"The precision engineering industry is undergoing rapid transformation, and we are making significant investments in strengthening our capabilities to capitalize on this momentum," said Chandock.
He emphasized that BFIL’s long-term growth plans are well-supported by a solid financial foundation and its continued focus on innovation.
BFIL also reported substantial progress in its new manufacturing unit in Belgaum, which is set to become a key driver of future growth. The first phase of this campus is nearing commercialization, with the company securing orders for its 32,000-ton machining capacity.
The company has visibility on fulfilling the capacity for the Mercedes Benz production line and expanding its forging output for specialized sectors like railways, defence, and aerospace.
The company's working capital cycle was reduced from 137 days in H1FY24 to 106 days in H1FY25, reflecting its improved financial health and operational efficiency.
This reduction in debtor days—from 177 days to 119 days—has enhanced liquidity and reduced the need for external financing. BFIL is now a positive cash flow company, a significant achievement for its financial stability.