The mercurial growth of the Indian automobile industry in the last year has had a positive effect on a number of other sectors in general and the automotive components manufacturing sector in particular. This was evident by the rise in growth rate of almost all companies operating in this sector. The growing demand for automobile leads to a surging demand for spares and components hence it has been an all-inclusive growth.
In a recent report Bharat Forge, market leader in auto component manufacturing, has registered a growth of an astonishing 118%, which is an exclusive net profit for the quarter ending December 2010. The log book for exports registered a Rs 359 crores in exports. According to the same set of reports, it was observed that the sky rocketing of exports was not limited to any segment or geography. Despite the slow down witnessed in America and much of Europe, huge number of exports was achieved.
Bharat Forge, based in Pune, reported a net profit to the tune of Rs 83 crores for the end of third quarter which was an astounding growth over Rs 38 crores in the previous year. Revenues of the company jumped 55.81 per cent from Rs 507 crores to Rs 790 crores. B N Kalyani, CMD of Bharat Forge was quoted as saying that the quarter was very significant for the company owing to the strong performance of both international and Indian operations. The recovery in North America and European countries gives the company further hope to grow and continue on this path. The new strategy adopted by the company to increase its share of the market in sectors other than automobiles is seen paying off. It was further reported that strong volumes of transaction were recorded in the company’s dealing in the non-automotive sector from both export and the domestic market.