Date:24/05/2006 URL: http://www.thehindu.com/2006/05/24/stories/2006052403481700.htm

Business

Bharat Forge net up 28 p.c. at Rs. 207 cr.

Staff Correspondent

Recommends a dividend of 150 per cent

Export revenues up 28 p.c.
To expand non-automotive business

Expansion of forging business in India on schedule

MUMBAI: Bharat Forge Ltd. (BFL), a leading global supplier of forged and machined auto components, has announced a consolidated (including subsidiaries) net profit of Rs. 251 crore for 2005-06 against Rs. 201 crore in the previous year. The company's consolidated revenues for the year were at Rs. 3,085 crore against Rs. 2001 crores. The board of the company has proposed a dividend of 150 per cent.

Of the total consolidated revenue of Rs. 3,085 crore, Rs. 2,110 crore was generated from sales to customers outside India taking global revenues' share in total revenues to 68 per cent.

This has been achieved by combination of global merger and acquisitions and a 28 per cent growth in the export revenues for BFL.

The company provided Rs. 547.85 crore (Rs. 335.56 crore) towards interest charges, Rs. 730.41 crore (Rs. 525.57 crore) for depreciation, Rs. 891.4 crore (Rs. 858.4 crore) for current tax, Rs. 154.88 crore (Rs 6.14 crore) for deferred tax and Rs. 33 crore (nil) for fringe benefit tax.

On a stand-alone basis, BFL reported revenues of Rs. 1,631 crore, a growth of 33 per cent over the previous year and a net profit of Rs. 207 crores, a 28 per cent jump.

In the quarter ended March 31, 2006, total revenue stood at Rs. 453 crore against Rs. 363 crore, registering a 25 per cent growth while the net profit was higher by 10 per cent at Rs. 53 crore against Rs. 48.4 crore.

According to B. N. Kalyani, Chairman and Managing Director, BFL, "Our aim will be substantially grow business with our existing customers and aggressively pursue new business opportunities in the non-automotive business.''

The non-automotive business currently contributes 17 per cent to the revenues of the company and this should go up to 25 per cent by 2008.

BFL had acquired 52 per cent stake in FAW China last year and the company will be fully aligned to cater to the global customer base during the current year. The company's expansion programme to double its forging capacity in India is progressing on schedule and will be completed in stages by the third quarter of the current year. It has already incurred a capital expenditure of Rs. 588.3 crore on the expansion programme till March 2006.