Financial Capital

Managing our Financial Capital

Through the last decade, we have made a remarkable progress, transitioning from a cyclical business to a well-diversified manufacturing conglomerate. Towards that end, we have made substantial investments in augmenting capacity and developing new products, all the while balancing growth needs with financial prudence. With a strong cash balance of ₹ 22,067 million and a net debt-to-equity ratio of 0.29, we remain well-placed to commit important capex as the need arises. This strategy has allowed us to incubate transformational businesses like Defence, strengthen our EV offerings and execute inorganic opportunities in the industrial space, irrespective of economic downturns. These verticals, catering to a well-diversified set of end users, provide a cushion against the vagaries of cycles in the commercial vehicle business.

The fruits of our efforts are becoming evident, as some of these businesses are nearing break-even. Additionally, despite a volatile environment, we have repaid loans worth ₹ 10,634 million in the last three years. Going ahead, as monetary conditions are likely to remain tight, we shall actively pursue further debt repayment.

Bharat Forge’s underlying business continues to deliver strong returns. Accordingly in the spirit of translating these returns in value for our shareholders, the Board of Directors of your Company has recommended a final dividend of 275% for FY 2022-23, in addition to the interim dividend of 75%.