The Hindu Business Line : Sale of German subsidiary boosts Bharat Forge net

Pune, May 20 The sale of its German subsidiary BF Beteilingungs GmbH boosted the Q4 net profit of forgings company Bharat Forge Ltd (stand alone) by Rs 30.3 crore, helping it post a 28 per cent growth over the net in the comparable quarter of the previous fiscal. The figures for the two quarters being compared stood at Rs 82.8 crore and Rs 64.2 crore respectively.

The stand alone company’s sales income was 12 per cent higher at Rs 580 crore (Rs 516 crore). According to Mr Baba Kalyani, Chairman and Managing Director, both the topline and bottomline took a hit on account of the rupee appreciation.

On a consolidated basis, the company posted Q4 net of Rs 63.6 crore (Rs 80.04 crore), translating into a 20.5 per cent decline year-on-year. The total sales income during the quarter remained virtually flat at Rs 1,149.9 crore (Rs 1,109.7 crore).

As per the un-audited Q4 results announced today, on a stand alone basis, the company’s performance was marginally better than that of the wholly owned foreign subsidiaries. The overseas companies showed lower sales at Rs 570 crore (Rs 590 crore).

For the year ended March 31, 2008, the consolidated revenue was Rs 4,752 crore, a growth of 11 per cent; EBIDTA and PAT after exceptional item (sale of its subsidiary) reached Rs 804 crore and Rs 302 crore, a growth of 8 per cent and 4 per cent respectively. The company declared a dividend of 175 per cent (Rs 3.50 per share).

The company’s standalone net profit during the fiscal was Rs 274 crore, a growth of 14 per cent while revenue grew 18 per cent to touch Rs 2,285 crore.

Mr Kalyani said that though exports grew 40 per cent in dollar terms, the higher rupee impacted both the topline and bottomline. “We took a direct hit of Rs 88 crore,” he said.

Bharat Forge exported around 44 per cent of its production, nearly 50 per cent of which was to the US. Europe accounted for 45 per cent while the Asia Pacific region (including China) contributed the rest of the exports.

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Sale of German subsidiary boosts Bharat Forge net