“Q1 FY20 was a challenging quarter with negative demand development in the domestic market across segments, with OEM’s focussed on correcting inventory levels across the value chain. This coupled with the inventory destocking in the export Oil & Gas business, had an adverse impact on our performance. Total sales for the quarter at Rs 13,466 million declined by 9.0% compared to Q1 FY19. PAT was down 25.8% at Rs 1,741 million compared to Q1 FY19.
During the quarter, the company secured new business worth US$ 30 million for automotive application across domestic & export markets. We look forward to the commencement of operations at CLWT Nellore in the coming quarter.
Given the prevailing weak & uncertain demand environment, and especially the situation across the automotive value chain, the government has taken the issue seriously and is putting in place measures to improve demand and sentiments. We expect these measures to result in better off-take from H2 FY20.
While the sales development through the course of FY20 is dependent on end markets, our focus will be on aggressively cutting cost, accelerating new product development through our own R&D, free cash generation and strengthening the balance sheet. We have previously seen such cycles and are confident of coming out stronger and faster than before.” B.N. Kalyani, Chairman & Managing Director.
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SOURCE: Bharat Forge