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

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE, 2008.
       
(Rs. in Lacs)
Sr.No.
Particulars
Quarter ended
Year ended
   
30th June,
2008
(Unaudited)
30th June,
2007
(Unaudited)
31st March,
2008
(Audited)
         
1 Sales & Income from Operations
  - Domestic
38,295
31,246
140,811
  - F.O.B value of Exports & Corresponding Income
29,751
22,369
96,100
  Total Sales
68,046
53,615
236,911
  Less : Excise Duty
4,310
3,928
17,261
  Total Net Sales / Income from Operations
63,736
49,687
219,650
   
2 Other Income
1,209
2,001
6,234
   
3 Total Income
64,945
51,688
225,884
   
4 Total expenditure :      
  a) (Increase) / Decrease in stock in trade
(498)
(34)
(2,064)
  b) Consumption of raw materials
30,131
23,022
101,195
  c) Employees cost
3,833
3,374
14,488
  d) Depreciation
3,774
3,290
13,894
  e) Manufacturing expenses
10,227
8,955
37,816
  f) Others
4,447
4,248
15,999
  Total expenditure
51,914
42,855
181,328
   
5 Interest
1,954
2,336
10,499
   
6  Profit Before Tax & Exceptional Items
11,077
6,497
34,057
         
7 Exceptional Items
  -Profit on Sale of Investments
-
-
3,035
  -Exchange Gain / (Loss) ( See Note 5)
(6,934)
3,333
2,606
   
8 Profit before Tax
4,143
9,830
39,698
   
9 Tax Expenses
1,487
3,349
12,339
   
10 Net Profit after Tax
2,656
6,481
27,359
   
11 Paid-up Equity Share Capital (Face Value Rs.2/-)
4,454
4,454
4,454
   
12 Reserves excluding revaluation reserves
- 
 -
142,874
   
13 Basic & Diluted Earning per share of Rs 2/- before Extraordinary item
1.19
2.90
12.25
   
14 Basic & Diluted Earning per share of Rs 2/- after Extraordinary item
1.19
2.90
12.25
   
15 Total public shareholding
  - No of Shares
132,205,409
135,001,001
132,205,409
  - Percentage of shareholding
59.38%
60.63%
59.38%
         

 
 
   
 
  Basic & Diluted Earning per share of Rs 2/- before Exceptional item
3.29
1.90
10.12
 
     
 

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, taken on record by the Board of Directors of the Company at its meeting held on July 31, 2008 and 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 USD 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 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.1,061 lacs during the quarter. ( Previous period Rs. 1,410 lacs, Previous year Rs.5,227 lacs )

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 transaction, 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, which are also 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. 2,555 lacs 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. 6,934 lacs 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. Out of this Rs. 5,685 lacs of loss is in respect of FCCB's, which if not converted are repayable from April 2010 to April 2013 and Rs.1,249 lacs is in respect of other loans etc.

For Bharat Forge Limited

( B. N. Kalyani )
Chairman and Managing Director

  

 

Pune
Dated : July 31, 2008.