BHARAT FORGE LIMITED
Regd. Office : Mundhwa, Pune 411 036

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER, 2008.
           
(Rs. in Lacs)
Sr.No.
Particulars
Quarter ended
Half year ended
Year ended
   
30th September,
2008
(Unaudited)
30th September,
2007
(Unaudited)
30th September,
2008
(Unaudited)
30th September,
2007
(Unaudited)
31st March,
2008
(Audited)
             
1 a) Sales & Income from Operations
  - Domestic
35,474
33,032
72,012
63,029
134,947
  - F.O.B value of Exports & Corresponding Income
34,031
26,104
63,782
48,473
96,100
  Total Sales
69,505
59,136
135,794
111,502
231,047
  Less : Excise Duty
4,058
4,326
8,368
8,254
17,261
  Total Net Sales
65,447
54,810
127,426
103,248
213,786
   
  b) Other Operating Income
2,109
1,512
3,866
2,761
5,864
  Total Net Sales/Income from Operations
67,556
56,322
131,292
106,009
219,650
   
2  Total expenditure :          
  a) (Increase) / Decrease in stock in trade
(3,306)
(841)
(3,804)
(875)
(2,064)
  b) Consumption of raw materials
35,408
26,321
65,539
49,343
101,195
  c) Employee Cost
3,826
3,538
7,659
6,912
14,488
  d) Depreciation
3,888
3,511
7,662
6,801
13,894
  e) Manufacturing Expenses
11,010
9,339
21,237
18,294
37,816
  f) Others
4,846
4,135
9,293
8,383
15,999
  Total expenditure
55,672
46,003
107,586
88,858
181,328
   
3 Profit from Operations before other Income, Interest and Exceptional Item
11,884
10,319
23,706
17,151
38,322
   
4 Other Income
1,022
1,440
2,231
3,441
6,234
   
5 Profit from Operations before Interest and Exceptional Item
12,906
11,759

25,937
20,592
44,556
   
6  Interest
2,356
2,730
4,310
5,066
10,499
   
7 Profit after interest but before Exceptional Item
10,550
9,029
21,627
15,526
34,057
   
8 Exceptional items :
  - Profit on Sale of Investments
-
-
-
-
3,035
  - Exchange Gain / (Loss) ( See Note 5)
(8,751)
1,087
(15,685)
4,420
2,606
   
9  Profit from ordinary activities before Tax
1,799
10,116
5,942
19,946
39,698
   
10  Tax Expenses
674
3,341
2,161
6,690
12,339
   
11 Net Profit from ordinary activities after Tax
1,125
6,775
3,781
13,256
27,359
   
12 Extraordinary item ( net of tax expenses )
-
-
-
-
-
   
13 Net Profit for the period
1,125
6,775
3,781
13,256
27,359
   
14 Paid-up Equity Share Capital (Face Value Rs.2/-)
4,454
4,454
4,454
4,454
4,454
   
15 Reserves excluding revaluation reserves as per Balance sheet of the previous accounting year
-
-
-
-
142,874
   
16 a) Basic & Diluted Earning per share of Rs 2/- before Extraordinary item
0.49
3.03
1.68
5.93
12.25
 
b) Basic & Diluted Earning per share of Rs 2/- after Extraordinary item
0.49
3.03
1.68
5.93
12.25
   
17 Total public shareholding
  - No of Shares
132,190,114
133,102,409
132,190,114
133,102,409
132,205,409
  - Percentage of shareholding
59.37%
59.78%
59.37%
59.78%
59.38%
             

 
 
     
 

Notes:

1. Previous year/ period's figures are regrouped/ restated wherever necessary to make them comparable with those of the current period.

2. The above results were reviewed by the Audit Committee, approved by the Board of Directors of the Company at its meeting held on October 25, 2008 and were subjected to a "Limited Review" by the Auditors.

3(a) Company had issued 0.5% Foreign Currency Convertible Bonds ( FCCB) due 2010 in two Tranches ( Tranche 1 & 2), each having varied rights and obligations , aggregating US 600 lacs each, convertible at an initial price of Rs.336.11 and Rs. 384.12 per share of Rs.2/- each respectively subject to adjustments specified in the offering circular dated 15th April 2005. In view of the current market price of the Company's equity shares being less than the Floor price for exercise, in respect of both the tranches of the Bonds , the option embedded in the said  Bonds to subscribe to Equity shares is, at present, antidilutive.

(b) Company had further issued Zero Coupon Foreign Currency Convertible Bonds ( FCCB) in two tranches (Viz. Tranche A and Tranche B) amounting to USD 400 lacs and USD 399 lacs due 2012 and 2013 respectively each having varied rights and obligations and optionally convertible at an initial price of Rs.604.03 and Rs.690.32 per share of Rs.2/- each respectively subject to adjustment specified in the offering circular dated 24th April, 2006. Since the current market price of the Company's Equity shares being less than the Floor price in respect of both the Tranches of the Bonds, the option embedded in the said Bonds to subscribe to Equity Shares is, at present, antidilutive.

Pending utilisation, part of the funds raised out of FCCB and GDR have been temporarily placed in Fixed Deposits and investments which generated an income aggregating Rs.863 lacs during the quarter and Rs.1,924 lacs year to date. ( Previous period Rs.1,365 lacs, and Rs.2,774 lacs respectively and Rs. 5,227 lacs for the year ended March 31,2008.)

4. During the quarter, no Investor complaint was received. There were no Investor complaints pending for redressal as at the commencement and end of the quarter.

5.In order to recognize the impact of fluctuation in foreign currency rates arising out of instruments acquired to hedge highly probable transactions, in appropriate accounting periods, the company has from this year decided to apply the principles of recognition set out in the International Accounting standards as suggested by the Technical Directorate of the Institute of Chartered Accountants of India, as reflected in the Accounting Standard-30- Financial Instruments- Recognition and Measurement.

As a result, the impact of unrealised loss (net) consequent to foreign currency fluctuation in respect of effective hedging instruments, to hedge future exports, aggregating Rs. 2,169 lacs for the quarter and Rs. 4,724 lacs year to date are carried as a Hedging Reserve to be ultimately settled when the underlying transaction arises, in the profit and loss account as against the practice of recognizing the same in the profit and loss account, on valuation at the end of each period. Hence previous period/ year figures are not strictly comparable.

The Company has not entered into any exotic derivative hedging instruments.

Other Foreign currency Financial Assets , liabilities, receivables etc. that do not qualify for hedge accounting have been revalued at the period end rate and resultant net loss of Rs.8,751 lacs for the quarter and Rs.15,685 lacs year to date has been debited to profit and loss account and treated as exceptional item in above results on account of the wide fluctuation in foreign exchange rates witnessed during the quarter/ period. Out of this loss Rs.7,355 lacs for the quarter and Rs.13,040 lacs year to date is in respect of FCCB's, which if not converted are repayable from April 2010 to April 2013 and Rs.1,396 lacs for the quarter and Rs.2,645 lacs for year to date is in respect of other loans etc.

For Bharat Forge Limited

( B. N. Kalyani )
Chairman and Managing Director

  

 

Pune
Dated : October 25, 2008.