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Bharat Forge Ltd , the world's second largest forgings maker, on Monday reported a consolidated profit for June-quarter versus a loss a year ago helped by higher sales from its overseas subsidiaries.Profit for the group came in at 620.7 million rupees compared with a net loss of 461.4 million rupees a year ago. Total income rose to 10.12 billion rupees from 6.09 billion rupees.On a standalone basis Bharat Forge's net profit rose to 594.3 million rupees from 9.6 million rupees.A Reuters poll of brokerages had expected standalone net profit of 561 million rupees for the period."The turnaround of the performance in the subsidiaries is on account of restructuring of operations which we carried out last year and improvement in automotive demand environment in Europe," Bharat Forge said.Bharat Forge has manufacturing plants at 12 locations, including three in Germany and one each in Sweden, Scotland and the U.S.Revenue from subsidiaries rose nearly 52 percent to 3.72 billion rupees while quarterly EBITDA (earnings before interest, tax, depreciation and amortisation) stood at 158 million rupees as against a loss of 214 million rupees a year ago."This quarter results have been encouraging with growth coming in from all geographies across automotive and non-automotive business," the firm said.Bharat Forge has benefited hugely from the buoyancy in India's commercial vehicles sector. It gets an estimated 70-75 percent of domestic revenues from commercial vehicles, analysts have said.Car sales in India rose an annual 30.8 percent in June, as a rapidly expanding economy continues to draw buyers to showrooms. They are expected to rise 12-13 percent in 2010/11, according to the Society of Indian Automobile Manufacturers.Sales of trucks and buses rose 44 percent in June to 52,211 units. In May commercial vehicle sales were up 58 percent."The order pipeline in the non auto business continues to grow and has witnessed new order wins in this quarter also," the firm said without elaborating.Bharat Forge, which counts top global and Indian auto makers among its clients, gets around 80 percent of its sales from the automotive business. It aims to raise its higher-margin non-automotive share to 40 percent by FY12.It has a joint venture pact with French nuclear power major Areva , and had in June raised around $134 million through a sale of securities to expand non-auto capacity.At 11:26 a.m., shares were up 0.95 percent at 334.6 rupees in a weak Mumbai market.(Reporting by Aniruddha Basu; Editing by Ramya Venugopal)(For more business news on Reuters India click http://in.reuters.com)
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