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Balu Forge Industries Ltd. (BSE: 531112 I NSE: BLUFORGE) (the "Company" or "BFIL"), a leading precision engineering and manufacturing company, approved its Audited Consolidated Financial Results for the quarter and year ended on 31st March 2025, in the meeting of its Board of Directors held on 14th May 2025

Consolidated Financial Highlights for FY25:

* Cash Flow from Operations of Rs. 148 Cr in FY25, a sharp increase of 566% compared to FY24, underpinned by improved EBITDA and collection of receivables

* Total Debt of Rs. 36 Cr, Cash and Equivalents of Rs. 96 Cr and Net Cash of Rs. 60 Cr

* Total Debt / Equity reduced to 0.03x as of FY25, down from 0.09x in FY24, reflecting ongoing deleveraging and maintaining its capital structure for future growth initiatives

* Working capital days improved significantly to 104 days in FY25 compared to 129 days in FY24

* Return on Capital Employed (ROCE) improved to 30.1%, as a result of higher asset utilization, operational efficiencies and greater value-added product sales

Key Business Developments During FY25

1. Capacity Expansion and Infrastructure Development

* Increased the forging capacity to 100,000 TPA & further expansion in progress, supporting growth in key sectors such as Defence, Aerospace and Railways

* Expanded precision machining capacity to meet growing demand from higher forging capacity, ensuring the delivery of fully machined, value-added components globally

* Focused on acquiring capacity in critical areas such as defence components, the heaviest weight category of closed-die forgings and high-precision machining

2. Technological Advancements

* Integrated 7-axis multi-axis machining, automation in forging and anti-vibration systems to enhance product precision, operational efficiency and scalability

* Continued investment in advanced technologies to maintain the production of high-quality, precisionengineered components across various industries

* Prioritization the production of the fully machined, value-added components, reflecting its core expertise in precision machining, while offering comprehensive solutions to clients

3. End Customer Diversification

* Expanded customer base in the Defence, Aerospace and Railway industries, driving revenue growth while mitigating risks from downturns in the automotive sector and geopolitical challenges

* Developed capabilities tailored to meet the evolving demands of the Defence and Aerospace industries, ensuring long-term growth in these sectors

* Anticipated growth in the non-automotive sectors, particularly Defence, Aerospace, and Railways, contributing to overall revenue in the present and upcoming financial years

* Achieved positive growth in traditional sectors, particularly the Commercial Vehicle (CV) segment

4. Geographic Expansion and Market Penetration

* Enhanced presence in key European and Asian markets, positioning itself to leverage shifting production patterns, particularly the EU+1 and China+1 strategies

* Expanded on-ground presence across more countries to enhance serviceability and strengthen its position in key markets

5. Broadening Customer Relationships

* Added new customers across various sectors, further diversifying its revenue streams

* Strengthened relationships with existing clients, reinforcing its role as a trusted partner in key sectors such as CVs, Heavy Engineering, and Agriculture

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