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Home arrow News arrow Business News arrow Bharat Forge sees strong traction in the non auto business
Bharat Forge sees strong traction in the non auto business Print E-mail
Written by Vijay   
Tuesday, 25 May 2010
Mumbai: Bharat Forge Ltd., the flagship company of the USD 2.4 billion Kalyani Group and a supplier of forged and machined components, today announced its Q4 & FY2010 results.

On the Non Auto front, BFL is starting to see recovery in demand in the export markets especially in sectors such as Transportation, Oil & Gas and Power. In FY 2010, BFL has won new orders in Nuclear Energy, Oil & Gas and Railways sectors. These contracts will go in to serial production in FY 2010-11. The company has small capital expenditure plans this year and will invest more in the non-automotive sector. To tap the huge potential in the power sector it plans to scale up its capacity of turbine generators.

"The traction and recovery in the non auto business is starting to gather momentum & this will help the company in achieving desired growth in the non auto segment. With new order wins on auto & non auto at the component level, we are looking at a significant growth in company’s business in the days to come," said Baba N Kalyani, Chairman and Managing Director of Bharat Forge Ltd.

Bharat Forge expects 40 per cent of total revenue from the non-automotive sector by 2012 from the present 30 per cent.

"The scenario is starting to look quite encouraging for the company. On the auto business we are witnessing strong momentum in the Indian automotive market coupled with clear signs of recovery in the North American CV market. The subsidiaries performance has turned around subsequent to the restructuring & demand revival in their respective markets," Baba N Kalyani said.

For Q4 FY10, standalone revenues registered strong growth of 92.3% increasing from Rs 293 crores to Rs 562 crores. Domestic revenues for the quarter grew by 98.9% to Rs 343 crores driven by strong momentum in the Indian CV market while exports grew by 82.8% to 220 crores.

EBITDA% excluding other income for the quarter was 25.0% as compared to 14.9% in corresponding period last year while PBT before exchange gain/ (Loss) for the quarter was Rs 82 crores against loss of Rs 2.4 crores in the corresponding period last year.

Total Revenue & PBT before exchange Gain/ (Loss) for the combined entity excluding the China JV for the Quarter was Rs 924 crores & Rs 73 crores as against Rs 627 crores and a loss of Rs 55 crores in the corresponding quarter previous year.

For the full year, consolidated and standalone total income decreased by 30.2% and 10.3% respectively. The consolidated performance was affected by weak market conditions in Europe and USA which impacted the subsidiaries performance, besides one time restructuring expenses at the overseas operations.

Post the financial year end, the company redeemed FCCB’s of US$ 131.48 including redemption premium on April 20th 2010 out of surplus cash. Subsequently, the company also completed its fund raising programme through a unique triple barrel simultaneous offering of Equity, warrants & Debt with a total Issue size of Rs 6,261 million.

Dr. Arndt Lassmann, a German national, has been appointed as the Chief Executive Officer of the European operations of Bharat Forge Limited in place of Mr. Eckard Rudau who has retired. Dr. Lassmann will be responsible for all the subsidiaries of Bharat Forge Limited located in European Union. Dr. Lassmann brings with him a rich experience of 16 years in managing large automotive companies in Europe.

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