Balu Forge Industries Ltd., a leading precision engineering and manufacturing company, approved its Audited Consolidated Financial Results for the quarter and year ended 31st March 2025 at its Board Meeting held on 14th May 2025.
Consolidated Financial Highlights for FY25:
- Cash flow from operations stood at ₹148 Cr in FY25, a sharp increase of 566% over FY24, driven by improved EBITDA and receivables collection.
- Total Debt reduced to ₹36 Cr; Cash & Equivalents stood at ₹96 Cr; Net Cash position of ₹60 Cr.
- Debt-to-equity ratio improved significantly to 0.03x in FY25, from 0.09x in FY24.
- Working capital cycle improved to 104 days in FY25 from 129 days in FY24.
- Return on Capital Employed (ROCE) improved to 30.1%, owing to better asset utilisation, operational efficiency, and value-added product mix.
Key Business Developments During FY25:
1. Capacity Expansion & Infrastructure Development
- Forging capacity increased to 100,000 TPA, with further expansion underway.
- Precision machining capacity expanded to support fully machined components across global markets.
- Focused capacity additions in defence-grade forgings, closed-die forgings, and high-precision machining.
2. Technological Advancements
- Integrated 7-axis multi-axis machining, automation in forging, and anti-vibration systems.
- Continued investments in tech upgrades to ensure quality and scalability.
- Shift towards fully machined, value-added components as part of core manufacturing strategy.
3. Customer Diversification
- Expanded client base across Defence, Aerospace, and Railways.
- Successfully reduced automotive sector dependency and navigated geopolitical risks.
- Growth seen in non-auto and traditional sectors, especially Commercial Vehicles (CVs).
4. Geographic Expansion & Market Penetration
- Strengthened presence in key European and Asian markets.
- Leveraged EU+1 and China+1 strategies to expand client reach.
- On-ground presence scaled to enhance service capabilities.
5. Deepening Customer Relationships
- Onboarded new clients across core and emerging sectors.
- Strengthened relationships with existing clients in CVs, heavy engineering, and agriculture.
"We are pleased to report a strong performance for Q4 and FY25. Revenue from operations reached ₹924 Cr, the highest in our history, marking a 65% growth over FY24. EBITDA grew 110.8% to ₹251 Cr, and PAT stood at ₹204 Cr, highlighting operational efficiency and diversification success.
In FY25, we made significant capex to expand our capabilities in defence, aerospace, and railways—setting the stage for robust growth in FY26. With a growing and high-quality order book, we remain confident in delivering sustained long-term value through technology investments, talent expansion, and strategic execution," said Trimaan Chandock, Executive Director, BFIL.
