The Hindu Business Line : Slowdown tells on Bharat Forge numbers

Pune, Jan. 22 Bharat Forge’s third quarter results reflect the slowdown in the automobile market, with its domestic operations showing a 93 per cent drop in net profit while its consolidated results, including that of its subsidiaries, reporting a loss for the period.

The company has said the “unprecedented, sudden and unforeseen decline in the global automotive industry” affected its domestic and global operations.

The company has posted a net profit of Rs 4.35 crore during the third quarter of the current fiscal, a 93 per cent drop over a profit of Rs 58.18 crore during the comparable quarter last year. Total sales during the period dropped 19 per cent to Rs 453.05 crore from Rs 556.73 crore.

On a consolidated basis, Bharat Forge posted a loss of Rs 36.56 crore for the third quarter compared to a profit of Rs 70.96 crore in the same period last year, while sales dropped 11 per cent to Rs 960 crore from Rs 1,080 crore previously. This included a Rs 40.02-crore loss on account of exchange, and Rs 6.69 crore as cost of manpower redundancy.

A company press release quoted Mr Baba N. Kalyani, Chairman and Managing Director, Bharat Forge Ltd, as saying that “the risk aversion from both the OEMs and end consumers fuelled by the deepening global recession has had a severe impact on the overall automotive industry. This had a cascading effect on the overall performance of Bharat Forge, both at its overseas and domestic operations.”

The company’s board, which met today, decided to buy back outstanding foreign currency convertible bonds.

On the NSE on Thursday, Bharat Forge’s Rs 2 shares closed nearly 7 per cent down at Rs 73.10.

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