Balu Forge Industries (531112) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue rose 60.09% YoY to ₹2,228.79 mn and PAT grew 106.88% to ₹481.42 mn; H1 revenue reached ₹3,981.88 mn and PAT ₹823.09 mn.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2024; auditors issued limited review reports.

Financial highlights

• Consolidated Q2 revenue was ₹22,287.92 lakh vs ₹13,922.45 lakh YoY; PBT was ₹6,394.95 lakh vs ₹2,996.22 lakh.

• Consolidated H1 revenue was ₹39,818.82 lakh vs ₹25,160.94 lakh; PBT was ₹10,586.40 lakh vs ₹4,902.79 lakh, and PAT ₹8,230.91 lakh vs ₹3,994.00 lakh.

• Standalone Q2 revenue was ₹15,737.90 lakh vs ₹10,203.02 lakh; PAT was ₹3,192.02 lakh vs ₹1,743.59 lakh. Standalone H1 revenue was ₹28,037.25 lakh vs ₹17,165.47 lakh; PAT was ₹5,597.74 lakh vs ₹2,774.50 lakh.

• Q2 EBITDA excluding other income was ₹652.22 mn, up 116.50% YoY; margin rose to 29.3% from 21.6%. H1 EBITDA was ₹1,084.26 mn vs ₹520.23 mn; margin increased to 27.2% from 20.7%.

• Q2 PAT margin was 21.6% vs 16.7%; H1 PAT margin was 20.7% vs 15.9%. Consolidated diluted EPS was ₹4.26 in Q2 and ₹7.39 in H1.

Outlook and guidance

• Belgaum first-phase commercialization was on track; forge-shop output was expected to contribute significantly in the last quarter, with forging lines and the first 7-axis machine progressing toward commissioning.

• Workforce expansion to over 1,000 personnel is planned for the coming financial year, with emphasis on R&D, new products and material chemistries.

• Machining capacity expansion is planned to align with 72,000 tons of forging capacity; further specialized capacity additions are under consideration for railway and defence demand.

• Product development and testing span aerospace, railways, defence and materials from aluminium to titanium; some railway and defence products have reached commercialization.