Image Source : FILE PHOTO A worker working in a plant.
The automobile industry has reported a sharp jump in sales owing to a rise in disposable income and also with the onset of the festivities. This has led to a sharp uptick in manufacturing activities with the forging sector witnessing a jump in demand. Also, the rise in metal prices in the domestic market has also boosted the forging industry’s topline.
Notably, the domestic forging industry primarily caters to the automotive industry, which accounts for 60–70 per cent of the forging production, according to a PTI report.
Taking a queue from the rise in demand, Balu Forge, a leading forging company in the country, has reported 382 per cent YoY jump in profit after tax in the second quarter. The net profit stood at Rs 23.2 crore.
The revenue from operations increased by 130 per cent to Rs 139 crore in the quarter, led by higher demand across the segments, it said in an exchange filing. The total income went up by 113 per cent to Rs 143.2 crore.
Notably, the key growth drivers were orders from the defence industry, railways and an increase in agricultural activities in the Monsoon.
The rebound in the passenger and commercial vehicle markets in the post-pandemic years have also led to great profitability in the industry.
Meanwhile, shares of Balu Forge on Tuesday settled in green with gains of more than 4 per cent at Rs 225.40.
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