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21st January 2008

Performance for the quarter ended December 31, 2007

Combined Revenue reaches Rs 1099 crores Standalone Revenues grew 16% to Rs 572 crores

Key Highlights

  • The Company achieved standalone revenue of Rs 572 crores, a growth of 16%.
  • BFL Non Auto programme well on stream. Commercial production to start in 2 nd Half FY09.
  • Joint Venture with NTPC

Bharat Forge Ltd., the flagship company of the USD 2.1 billion Kalyani Group and a leading global supplier of forged and machined components, today announced its third quar ter results with combined revenue reaching Rs.1099.4 crores, a growt h of 6%.

Standalone Revenue & EBITDA reached Rs 572.3 crore s and Rs 151.9 crores, a growth of 16% & 8.4% respectively.

During the quarter, the company on a standalone bas is has maintained its Operating margins on YoY as well as sequential basis.

Commenting on the results, Mr. Baba N Kalyani, Chai rman and Managing Director of Bharat Forge Ltd., said: "the last few quarters have been challenging for the Indian auto industry, part icularly to companies which are large exporters due to the double effect of Indian market slowdown coupled with the drastic reduction in US CV Market” . The US CV space witnessed a fall in production on YoY basis of over 40% which was much higher than expectation of 24% to 25%. This has res ulted in lower production and slower ramp-up of BFL’s new HDEP programmes. Based on feedback from our customers, we expect the US CV ma rket to recover in 2 nd half of 2008.

The Domestic market after witnessing YOY drop in th e first two quarters of FY08 has shown signs of initial recovery in Q3 and markets expect it to gain momentum in the coming quarters. , he added.

As a part of the company’s foray in to Capital goods sector, Bharat Forge will invest in a JV with NTPC for manufacturing equipmen ts for the power and capital goods sector. BFL will have majority stake in the said JV.

The Company’s non-auto capacity expansion programme is well on stream and commercial production for its Baramati & open f orge plant will commence towards the end of Q4 FY09 and Q1 FY10 res pectively. This will be a major inflection point and will add significan tly to the top line in FY09.