• Outlook: Demand remains strong across markets. In exports, chip shortage could have an impact 3QFY22. In India, CVs are expected to growth on sequential basis (4Q>3Q>2Q).
  • EV strategy: Investments in CLWT, strategic stake in EV start up and R&D in EV components has enables BHFC to offer solutions ranging from components to sub systems and systems (in power and control electronics) across the 2W to CVs.
  • Light-weighting components (forged or casted) are ramping up quite aggressively. Aluminum forging business in EU/US will ramp-up from current revenues of USD70m to USD250m in next few years based on its order and capacity in hand.
  • Electronics: It offers EV components in power & control electronics for 48V to 800V range. Revenues should start from FY23 and ramp-up by FY24.
  • Overseas subsidiaries registered revenues of INR16.6b and EBITDA margin of 11.3% in 1HCY21 despite chip shortage, supported by focus on cost optimization and product mix improvement. For CY22, as aluminum forging ramps-up margins should improve substantially.
  • Export PVs: Company continues to increase its market share in the traditional powertrain and is simultaneously engaging with customers on solutions for BEV and other technologies.
  • Oil & Gas: Revenue grew to INR2b in 2QFY22 (v/s INR1.7b in 1QFY22).
  • Domestic industrial: 1) 2Q growth was driven by commencement of supply of lightweight aluminum forged oxygen cylinder. It has order for 100k cylinder which will be completed by 3QFY22 (2Q revenues of INR690m). It is focusing on making this a regular business in varied application globally. 2) Revenue is expected to double over next 3 years from FY22, supported by ramp-up in Sanghvi Forgings (as it 50-60k tons capacity with full revenue potential of INR7.5-9b, but it is currently operating at INR1b revenues). Sanghvi Forgings became PBT positive during the 2QFY22, the first quarter after acquisition by BHFC.

  • Defense: It has made progress in 3 areas - Artillery guns, vehicles and mounted guns (Garuda, MGX). One gun in final stage testing and mounted gun is now going for testing. It will take 2 years for this to contribute 10% to revenues.
  • FY22 capex: Standalone at ~INR3.5b (1H at INR2.5b) and consolidated at ~INR6b (1H at INR5.06b).

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