1. Summary Information
|
Country |
India |
||
|
Company Name |
BHARAT FORGE LIMITED |
Principal Name 1 |
Mr. Babasaheb Neelkanth Kalyani |
|
Status |
Good |
Principal Name 2 |
Mr. G. K. Agarwal |
|
Registration # |
11-012046 |
||
|
Street Address |
Mundhwa, Pune Cantonment, Pune – 411036, |
||
|
Established Date |
19.06.1961 |
SIC Code |
-- |
|
Telephone# |
91-20-26702777 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-20-26822163 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Steel Forgings Finished Machined Crankshafts |
|
|
# of employees |
4000 (Approximately) |
Product Name 2 |
Couplings |
|
Paid up capital |
Rs.465,680,000/-
|
Product Name 3 |
Front Axle Assembly and Components |
|
Shareholders |
Shareholding of
Promoter and Promoter Group 42.05%, Public shareholding 57.95% |
Banking |
ICICI
Bank Limited |
|
Public Limited Corp. |
Yes |
Business Period |
52 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (66) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates
and Subsidiaries |
-- |
Bharat Forge
America Inc. |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
18,549,460,000 |
Current Liabilities |
12,079,240,000 |
|
Inventories |
5,031,340,000 |
Long-term Liabilities |
16,844,960,000 |
|
Fixed Assets |
17,961,990,000 |
Other Liabilities |
2,926,550,000 |
|
Deferred Assets |
000 |
Total Liabilities |
31,850,750,000 |
|
Invest& other Assets |
11,738,910,000 |
Retained Earnings |
20,965,270,000 |
|
|
|
Net Worth |
21,430,950,000 |
|
Total Assets |
53,281,700,000 |
Total Liab. & Equity |
53,281,700,000 |
|
Total Assets (Previous Year) |
44,640,710,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
36,859,740,000 |
Net Profit |
3,620,730,000 |
|
Sales(Previous yr) |
29,470,040,000 |
Net Profit(Prev.yr) |
3,108,250,000 |
MIRA INFORM REPORT
|
Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT FORGE LIMITED |
|
|
|
|
Registered
Office : |
Mundhwa, Pune Cantonment, Pune – 411036, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
19.06.1961 |
|
|
|
|
Com. Reg. No.: |
11-012046 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.465.680
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25209PN1961PLC012046 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB0272E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and |
|
|
|
|
No. of Employees
: |
4000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 85700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
to be experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA- [Long Term] |
|
Rating Explanation |
The high credit quality it carry low credit risk. |
|
Date |
29.03.2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1+ [Short Term] |
|
Rating Explanation |
Highest credit quality it carry lowest credit risk. |
|
Date |
29.03.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Mundhwa, Pune Cantonment, Pune – 411 036, |
|
Tel. No.: |
91-20-26702777 / 26702476 / 26702544 |
|
Fax No.: |
91-20-26822163 / 26822387 / 26820699 / 26824778 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
5000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory 2 : |
Gat No. 635, |
|
|
|
|
Factory 3 : |
Opposite Jarandeshwar Railway Station, Vadhuth, District Satara – 415
011, |
|
|
|
|
Factory 4 : |
Kusumbe, |
|
|
|
|
Factory 5 : |
CDP Bharat Forge GmbH, Julius Saxler – Str.4, D-54550 Daun /
Vulkaneifel |
|
Tel. No.: |
++ 49 (0) 6592 – 9501- 0 |
|
Fax No.: |
++ 49 (0) 6592 – 9501 -11 |
|
|
|
|
Factory 6 : |
CDP Bharat Forge GmbH, Mittelstr. 64, D-58256 Ennepetal |
|
Tel. No.: |
++ 49 (0)2333-796-0 |
|
Fax No.: |
++ 49 (0)2333-796-388 |
|
E-Mail : |
|
|
|
|
|
Factory 7 : |
Bharat Forge Aluminiumtechnik GmbH and Company KG, Berthelsdorfer Str.
8 |
|
Tel. No.: |
0049 37322 16389 |
|
Fax No.: |
0049 37322 16333 |
|
E-Mail : |
|
|
|
|
|
Chennai ( |
Fagun Mansion 3rd Floor, 26, Ethiraj Salai, Chennai- 600
105, Tamilnadu, India |
|
Tel. No.: |
91-44-28272116 |
|
Fax No.: |
91-44-28270921 |
|
E-Mail : |
|
|
|
|
|
|
Antriksh Bhavan, 14th Floor, 22 Kasturba Gandhi Marg, New
Delhi-110 001, |
|
Tel. No.: |
91-11-3312484 / 3312946 |
|
Fax No.: |
91-11-3357083 |
|
E-Mail : |
|
|
|
|
|
Mumbai Office
: |
Mittal Towers, B Wing, 15th Floor, Opp. New Council Hall,
Nariman Point, Mumbai – 400 021, |
|
Tel. No.: |
91-22-22830317/22830523 |
|
Fax No.: |
91-22-22040053 |
|
E-Mail : |
|
|
|
|
|
Kolkata ( |
|
|
Tel. No.: |
91-33-22305976 / 22306592 |
|
Fax No.: |
91-33-28500017 |
|
E-Mail : |
|
|
|
|
|
|
61-A , Rajendra Nagar, Sakchi, |
|
Tel. No.: |
91-657-2426732 |
|
E-Mail : |
|
|
|
|
|
|
23/2, 2nd Floor, Kammanahalli Main Road, Next To Vinayak
Temple |
|
Tel. No.: |
91-80-25806570 |
|
Fax No.: |
91-80-25806570 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Babasaheb Neelkanth Kalyani |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B.E. (Mech.) (Hons.), M.S. (M.I.T.) |
|
Date of Appointment : |
01.04.1972 |
|
|
|
|
Name : |
Mr. G. K. Agarwal |
|
Designation : |
Deputy Managing Director |
|
Qualification : |
B.E. (Mech.), M.B.A. |
|
Date of Appointment : |
1st November, 1976 |
|
|
|
|
Name : |
Mr. S. M. Thakore |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudhakar D. Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pratap G Pawar |
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. Dr. Uwe Loos |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash Chandrashekhar Bhalerao |
|
Designation : |
Executive Director |
|
Qualification : |
B.E. (Elect.), M.B.A., D.T.M. |
|
Date of Appointment : |
3rd March, 1987 |
|
|
|
|
Name : |
Mrs. Lalita D Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. H. Ravikumar |
|
Designation : |
ICICI Nominee Director |
|
|
|
|
Name : |
Mr. Alan Spencer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Naresh Narad |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. T. Mukherjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amit B. Kalyani |
|
Designation : |
Executive director |
|
|
|
|
Name : |
Mr. B. P. Kalyani |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. S. E. Tandale |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Sunil Chaturvedi |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
808115 |
0.35 |
|
|
97089055 |
41.71 |
|
|
97897170 |
42.05 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
97897170 |
42.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15129090 |
6.50 |
|
|
21148299 |
9.08 |
|
|
7699749 |
3.31 |
|
|
22046156 |
9.47 |
|
|
66023294 |
28.36 |
|
|
|
|
|
|
30767063 |
13.22 |
|
|
|
|
|
|
22264451 |
9.56 |
|
|
11480269 |
4.93 |
|
|
4352869 |
1.87 |
|
|
642953 |
0.28 |
|
|
1006891 |
0.43 |
|
|
2703025 |
1.16 |
|
|
68864652 |
29.58 |
|
Total Public shareholding (B) |
134887946 |
57.95 |
|
Total (A)+(B) |
232785116 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
9200 |
0.00 |
|
|
9200 |
0.00 |
|
Total (A)+(B)+(C) |
232794316 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
Steel Forging
|
MT |
320000 |
240000 |
182387(d) |
|
Finished Machined Crankshaft |
Nos. |
600000 |
518100 |
436774 |
|
Couplings |
MT |
600 |
600 |
-- |
|
Front Axle Assembly and Components |
Nos. |
600000 |
533600 |
325598 |
|
Well Head Assembly and Parts |
Nos. |
5000 |
-- |
-- |
|
Aluminium Road Wheel |
Nos. |
4000 |
4000 |
1321 |
|
General Engineering Equipments |
Nos. |
1100 (b) |
1100 |
29 |
|
Material Handling Equipments |
Nos. |
1350 (b) |
1350 |
-- |
|
Hydraulic and Mechanical Presses |
Nos. |
250 |
250 |
-- |
|
Bandshaw
Machines for cutting Metallic Round and Square Bars |
Nos. |
50 |
50 |
-- |
|
Front Axle Assembly at Dharwar |
Nos. |
50000 (b) |
-- |
-- |
|
Finished Machined Crankshaft (Chakan) |
Nos. |
300000 |
241500 |
160967 |
|
Front Axle Assembly and Components at Chakan |
Nos. |
300000 |
219600 |
96877 |
|
Transmission Parts |
Nos. |
3000000 |
2041000 |
1861051 |
|
Seal Rings, Clamps and Hubs |
Nos. |
50000 |
7000 |
-- |
|
Rocker Arm Assembly |
Nos. |
100000 |
-- |
-- |
|
Bonnets and Key Shaft |
Nos. |
50000 |
-- |
-- |
|
Steel Forgings at Baramati |
MT |
48000 |
47250 |
6565 (d) |
|
Machined Components at Baramati |
Nos. |
120000 |
12000 |
48849 |
|
Ring Rolling |
MT |
45000 |
40500 |
2828 |
NOTES:
(a) Annual
Capacity on maximum utilization basis.
(b) Under
Registration with Government Authority.
(c) Since the
Company's installed capacity is dependent on Product mix, which in turn is decided
on the basis of actual demand for various products from time to time, it is not
feasible for the Company to give exact installed capacity. The Company has,
however, indicated installed capacity on the basis of year's Product mix, as
certified by the Chairman and Managing Director and being a technical matter
accepted by the Auditors as correct.
(d) Includes
captive consumption 72748 M.T.(2009-2010: 47285M.T.) and Baramati 2883
M.T.(2009-2010: 1184M.T.)
GENERAL INFORMATION
|
No. of Employees : |
4000 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountants |
|
Address : |
|
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.2/- each |
Rs.600.000 Millions |
|
43000000 |
Cumulative Preferences Shares |
Rs.10/- each |
Rs.430.000 Millions |
|
2000000 |
Unclassified Shares |
Rs.10/- each |
Rs.2.000 Millions |
|
|
Total |
|
Rs.1032.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
232970666 |
Equity Shares |
Rs.2/- each |
Rs.465.940
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
232794316 |
Equity Shares |
Rs.2/- each |
Rs.465.590
Millions |
|
172840 |
Add: Forfeited Equity Shares |
Rs.0.055/-
each |
Rs.0.090
Million |
|
|
Total
|
|
Rs.465.680 Millions |
NOTES:
Reconciliation of the
shares outstanding at the beginning and at the end of the year:
|
Particular |
As on 31.03.2012 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Shares outstanding at the beginning of the year |
232794316 |
465.590 |
|
Conversion of FCCB’s in to Equity Shares |
-- |
-- |
|
Shares Issued to Qualified Institutional Buyers |
-- |
-- |
|
Shares outstanding at the end of the year |
232794316 |
465.590 |
Terms / rights attached to equity shares:
The company has
only one class of issued equity shares having a par value of Rs. 2/- per share.
Each holder of equity shares is entitled to one vote per share. The dividend
proposed by the Board of Directors and approved by the shareholders in the
Annual General Meeting is paid in Indian rupees. In the event of liquidation of
the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amount. The
distribution will be in proportion to the number of equity shares held by the
shareholders.
Details of
shareholders holding more than 5% of the aggregate shares in the Company:
|
Particular |
As on 31.03.2012 |
|
|
|
No. of Shares
Held |
% of Holding |
|
Kalyani Investment Company Limited |
31656095 |
13.60 |
|
KSL Holdings Private Limited |
23142870 |
9.94 |
|
Sundaram Trading and Investment Private Limited |
20986337 |
9.01 |
|
Life Insurance Corporation of India |
-- |
-- |
Terms of securities
convertible into equity shares:
(i) The Company
issued and allotted to Qualified Institutional Buyers, 10,000,000 Equity Shares
of Rs. 2/- each at a price of Rs. 272/- per share aggregating to Rs. 2,720 million
on 28th April, 2010, simultaneous with the issue of 1,760 10.75% Non
Convertible Debentures (NCD) of a face value of Rs. 1,000,000/- at par,
together with 6,500,000 warrants at a price of Rs. 2/- each entitling the
holder of each warrant to subscribe for 1 equity share of Rs. 2/- each at a
price of Rs. 272/- at any time within 3 years from the date of allotment. The
subscription money received on issue of warrants has been credited to Capital
Reserve as the same is not refundable / adjustable. Out of the funds raised,
Rs. 2,365 million has been temporarily deployed in Fixed Deposits with Banks
and in Mutual Funds and the Balance has been utilized towards the object of the
issue.
(ii) See Note 4(d) regarding Foreign Currency Convertible Bonds.
Other information:
The Company had
issued 3,636,500 Equity Shares of Rs. 10/- each ( later sub-divided into
18,182,500 Equity Shares of Rs. 2/- each) in April and May 2005 represented by
3,636,500 Global Depository Receipts (GDR) (on sub division 18,182,500 GDRs)
evidencing ‘Master GDR Certificates’ at a price of USD 27.50 per GDR (including
premium). GDRs outstanding at the close of the year are 9,200. The Funds raised
has been utilized towards the object of the issue.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
465.680 |
465.680 |
445.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
20965.270 |
19488.180 |
14838.990 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
21430.950 |
19953.860 |
15284.390 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10596.550 |
10926.790 |
9221.390 |
|
|
2] Unsecured Loans |
6248.410 |
3675.880 |
9306.330 |
|
|
TOTAL BORROWING |
16844.960 |
14602.670 |
18527.720 |
|
|
DEFERRED TAX LIABILITIES |
1271.520 |
1556.190 |
1064.990 |
|
|
|
|
|
|
|
|
TOTAL |
39547.430 |
36112.720 |
34877.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17961.990 |
17632.570 |
17761.090 |
|
|
Capital work-in-progress |
2890.610 |
784.380 |
1385.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
8848.300 |
8143.510 |
7209.470 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5031.340
|
4684.340 |
3947.980
|
|
|
Sundry Debtors |
4911.750
|
4313.210 |
3071.680
|
|
|
Cash & Bank Balances |
5386.240
|
2320.400 |
4934.990
|
|
|
Other Current Assets |
1581.310
|
1195.340 |
577.540
|
|
|
Loans & Advances |
6670.160
|
5566.960 |
5583.840
|
|
Total
Current Assets |
23580.800
|
18080.250 |
18116.030 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6696.310
|
6164.330 |
3644.000
|
|
|
Other Current Liabilities |
5382.930
|
881.830 |
3387.830
|
|
|
Provisions |
1655.030
|
1481.830 |
2563.060
|
|
Total
Current Liabilities |
13734.270
|
8527.990 |
9594.890
|
|
|
Net Current Assets |
9846.530
|
9552.260 |
8521.140
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39547.430 |
36112.720 |
34877.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
36859.740 |
29470.040 |
18563.980 |
|
|
|
Other Income |
660.960 |
465.430 |
323.380 |
|
|
|
TOTAL (A) |
37520.700 |
29935.470 |
18887.360 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
16496.200 |
13661.520 |
|
|
|
|
Employee benefits expense |
2542.550 |
2104.770 |
|
|
|
|
Other expenses |
8815.350 |
6906.820 |
15435.800 |
|
|
|
Exceptional
item: Diminution in value of Investment in Bharat Forge America Inc. |
704.160 |
0.000 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress |
(162.120) |
(358.320) |
|
|
|
|
TOTAL (B) |
28396.140 |
22314.790 |
15435.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9124.560 |
7620.680 |
3451.560 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1504.650 |
1214.420 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7619.910 |
6406.260 |
3451.552 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2149.330 |
1932.680 |
1644.390 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
5470.580 |
4473.580 |
1807.170 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1849.850 |
1365.330 |
536.710 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3620.730 |
3108.250 |
1270.460 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8284.100 |
6833.230 |
6167.510 |
|
|
|
|
|
|
|
|
|
Add |
EXCESS /(SHORT) PROVISION
FOR TAXATION AND TAX PAYMENTS |
0.000 |
0.000 |
0.430 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend on Equity Shares |
349.190 |
0.000 |
0.000 |
|
|
|
Tax on above dividend |
56.650 |
0.000 |
38.660 |
|
|
|
Proposed Final Dividend on Equity Shares |
581.990 |
814.780 |
232.790 |
|
|
|
Tax on above dividend |
94.410 |
132.180 |
|
|
|
|
Debenture Redemption Reserve |
408.600 |
399.420 |
206.220 |
|
|
|
Transfer to General Reserve |
362.100 |
311.000 |
127.500 |
|
|
BALANCE CARRIED
TO THE B/S |
10051.890 |
8284.100 |
6833.230 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
17309.920 |
12110.340 |
6996.690 |
|
|
|
Insurance and freight on Exports |
457.280 |
347.620 |
294.760 |
|
|
|
Tooling Charges |
37.170 |
84.750 |
68.930 |
|
|
|
Sale of Certified Emission Reduction Units |
0.000 |
3.450 |
4.310 |
|
|
|
Interest received on Fixed Deposits / Others |
0.020 |
0.700 |
9.580 |
|
|
|
Interest on Loan to Subsidiary |
33.360 |
22.050 |
10.140 |
|
|
|
Guarantee commission |
4.480 |
0.000 |
0.000 |
|
|
TOTAL EXPORTS |
17842.230 |
12568.910 |
7384.410 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
472.120 |
448.180 |
319.980 |
|
|
|
Stores & Spares |
715.260 |
498.540 |
338.810 |
|
|
|
Capital Goods |
1311.160 |
448.980 |
218.670 |
|
|
TOTAL IMPORTS |
2498.540 |
1395.700 |
877.460 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
15.55 |
13.39 |
5.71 |
|
|
|
Diluted |
15.53 |
13.11 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
9363.900 |
8675.900 |
6725.700 |
|
Total Expenditure |
7012.600 |
6732.200 |
5302.000 |
|
PBIDT (Excl OI) |
2351.300 |
1943.700 |
1423.700 |
|
Other Income |
279.100 |
256.500 |
194.600 |
|
Operating Profit |
2630.400 |
2200.200 |
1618.300 |
|
Interest |
547.3000 |
289.400 |
363.300 |
|
PBDT |
2083.100 |
2016.500 |
1255.000 |
|
Depreciation |
565.100 |
554.700 |
574.200 |
|
Profit Before Tax |
1518.000 |
1461.800 |
680.800 |
|
Tax |
465.900 |
434.000 |
205.600 |
|
Profit After Tax |
1052.100 |
1027.800 |
475.200 |
|
Net Profit |
1052.100 |
1027.800 |
475.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.65
|
10.38 |
6.73
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.84
|
15.18 |
5.85
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.17
|
12.53 |
3.03
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.22 |
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.79
|
0.73 |
1.21
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.72
|
2.12 |
1.88
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE OF THE
COMPANY:
During the year,
the total income of the Company was Rs.37521.000 millions, (previous year Rs.
29935.000 millions) representing an increase of 25.34%. Their customers both in
domestic and international markets witnessed strong demand. The Company was
able to support increased demand by improving productivity of existing
operations as also ramping up production at its Baramati facility.
EXPORTS REVENUE
(ON STAND-ALONE BASIS):
During the year,
Exports turnover of the Company was Rs. 17347.000 millions, (previous year Rs.
12195.000 millions) representing an increase of 42.25%. The Company on its
Global front has seen an increase of supply of approx. 45% both in North
American and European Markets as compared to the Financial Year 2010-11. This
increase seen was 9% for the Rest of the World. Penetration in the Global
Automotive/ Non Automotive sector was primarily on account of being a high
quality, cost competitive, technically advanced supplier for critical
components. The major growth drivers for the Company over the past 2 years have
been new customer additions, new product development, new segments and
increased business with all marquee customers generating strong order
pipe-line. The Company has demonstrated sustained growth in Non Auto business
driven by oil & gas, construction & mining sector along with the strong
presence witnessed in automotive sector. The Company continues to increase its
penetration both in Automotive and Non Automotive sectors inspite of all applicable
sectors showing high volatility.
MANAGEMENT DISCUSSION AND ANALYSIS:
With its global
capacities and customer base firmly in place, Bharat Forge Limited (‘Bharat
Forge’, ‘BFL’ or ‘the Company’) is developing a business model that is
predictable and better insulated from the vagaries of the external environment.
The Company has invested in creating capacities and global manufacturing
footprint to maximize growth opportunities across sectors and geographies. The
Company’s performance in financial year 2012 has been a step forward along this
path. Global macro-economic indicators
deteriorated with World output growth reducing from 5.3% in CY2010 to 3.9% in
CY 2011. As shown in Chart A, output growth slowed down across all of Bharat
Forge’s primary international markets, namely the USA, the European Union (EU)
and China.
On the domestic
front, too, there was a slowdown in economic activity. Estimates of the Central
Statistical Organization (CSO), Government of India (GOI), suggest that India’s
real GDP growth will have reduced from 8.4% in FY 2011 to 6.5% in FY2012 with
GDP% in Q4 FY12 coming in at 5.3%. (Chart B). To add to the woes, global oil
prices remained at levels well over US$85 per barrel for FY2012. In fact, for a
large part of the year it was above US$100 per barrel. Such high energy costs
put severe pressure on operating margins.
Even in such an
adverse business environment, Bharat Forge has delivered strong results, with healthy
growth in sales and profits. This was achieved by the Company effectively
positioning itself to leverage opportunities to gain market share, and to reach
out to new markets in terms of products and customers. The Company’s
consolidated
and standalone
performance is highlighted in this section:
THE PRIME DRIVERS
OF THIS PERFORMANCE ARE:
25% growth in
total income and 17% growth in PAT of the standalone business.
THIS HAS BEEN DRIVEN BY:
• Strong export
growth of 42% driven mainly by robust growth in the Commercial Vehicles market
globally as well as traction in nonautomotive business.
• Fast ramping up
of the Company’s non-auto operations, which increased by 32%.
• Sustained focus
on productivity & cost control.
• Supply of high
value added machined products as ratio of total production increased from 39%
in FY 2011 to 44% in FY 2012.
Both the efforts
have given the desired results with the Company performance reflecting
continued strong profitability despite severe cost pressures. This is a clear
indication of the amount of success they have been able to achieve on various
facets starting from yield improvement, productivity improvement, reduction in
working capital & lean manufacturing.
While the overseas
subsidiaries have improved their performance and are becoming self-sustaining,
there have been significant tangible improvements in the standalone entity. The
concerted efforts post the global crisis not limited to being lean internally,
enhanced efforts on the marketing front to garner more business & add new
clients to maintain a de-risked business model and focus on strengthening the
balance sheet has enabled the Company to surpass levels of FY 2009 on several
counts. Comparing some key performance parameters of standalone operations between
FY2009 and FY2012, one finds:
• Improvements in
higher value added products
• Increase in
Operating profitability
• Higher return on
capital
• Stronger balance
sheet
OUTLOOK:
Bharat Forge has emerged
out of the market uncertainties post-2008 as a much stronger Company in terms
of internal operational parameters, stronger balance sheet, customer relations
and product development capabilities.
Global economic
uncertainties will be there in the near future. The Company believes that with
the de-risked business model, strong design & engineering capabilities, it
can create opportunities for itself in this uncertain environment. With a focus
on innovation and technology to best leverage its strong customer relations,
Bharat Forge is reasonably confident of continuing on the growth path in
FY2013.
The Company
believes in the infrastructure led growth of India and is well positioned to
leverage opportunities in the Indian market on both the automotive as well as
on the non-automotive front. The ramp up of non-automotive facilities has
started giving results and is expected to continue in the coming years. The
capital goods and infrastructure business is positioning itself effectively in
the infrastructure space in India. While the environment has not been conducive
for business, the Company is confident that the infrastructure business will be
the driver of significant growth in the medium to long term.
FIXED ASSETS:
·
Land, Free hold
·
Land, lease hold
·
Buildings
·
Plant and Machinery
·
Railway sidings
·
Electrical installations
·
Factory equipments
·
Engineering instruments
·
Furniture and fittings
·
Office equipments
·
Vehicles and Aircrafts
·
Leased assets ( Plant and Machinery)
·
Leased assets (Power line)
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31ST DECEMBER, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.03.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from Operations |
6604.900 |
8521.900 |
24289.300 |
|
|
Other Operating Income |
120.800 |
154.000 |
476.200 |
|
|
Total Income From Operations (Net) |
6725.700 |
8675.900 |
24765.500 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
2713.200 |
3721.300 |
221.400 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
191.700 |
61.200 |
10512.600 |
|
|
Employee
benefits expenses |
627.300 |
643.100 |
1955.700 |
|
|
Depreciation
and amortization expenses |
574.200 |
554.700 |
1694.000 |
|
|
Manufacturing
expenses |
1325.200 |
1620.700 |
4666.800 |
|
|
Other
expenses |
444.600 |
685.900 |
1605.200 |
|
|
Total Expenses |
5876.200 |
7286.900 |
20655.700 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
849.500 |
1389.000 |
4109.800 |
|
|
|
|
|
|
|
4. |
Other
Income |
194.600 |
256.500 |
645.100 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
1044.100 |
1645.500 |
4754.900 |
|
|
|
|
|
|
|
6. |
Interest |
363.300 |
289.400 |
1200.000 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
680.800 |
1356.100 |
3554.900 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
105.700 |
105.700 |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
680.800 |
1461.800 |
3660.600 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
205.600 |
434.000 |
1105.500 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
475.200 |
1027.800 |
2555.100 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
475.200 |
1027.800 |
2555.100 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.2/- Each) |
465.700 |
465.700 |
465.700 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
2.05 |
4.41 |
10.98 |
|
|
b) Basic
and diluted EPS after extraordinary items |
2.05 |
4.40 |
10.96 |
|
|
|
|
|
|
|
|
Additional Information : |
|
|
|
|
|
Profit before tax, before
exchange gain / (loss) & exceptional items |
644.300 |
1369.700 |
3629.700 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
134887946 |
134887946 |
134887946 |
|
|
-
Percentage of Shareholding |
57.95 |
57.95 |
57.95 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
97897170 |
97897170 |
97897170 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
42.05 |
42.05 |
42.05 |
|
Particulars |
3 Months ended on December, 31, 2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
1 Previous year/ period's figures are regrouped/ restated wherever necessary to make them comparable with those of the current period.
2 Earnings per share have been computed in accordance with the principles laid down by Accounting Standard (AS) 20.
3 Due to variables currently indeterminate, the premium on actual redemption for Tranche 'B' of FCCB's is not computable and hence will be recognized if and as and when the redemption option is exercised, as a charge to the securities premium account in terms of Section 78(2)(d) of the Companies Act,1956.
4 Exceptional items represent:
(i) - Provision for diminution in value of investment in Bharat Forge America Inc. (BFA) Considering substantial erosion of net worth of BFA due to continuous losses, the Management, has provided additional amount of Rs. 260.000 Millions towards diminution in the carrying cost of its investments.
(ii) - Reversal of interest differential per Accounting Standard (AS) 16 on "Borrowing Costs" The Company had earlier exercised the option offered in the Accounting Standard (AS) 11 relating to " The effects of changes in foreign exchange rates" to capitalize foreign exchange difference on translation of long term monetary liabilities to cost of depreciable assets where used to acquire such assets and in other cases to FCMITDA (Foreign Currency Monetary Items Translation Difference Account) after providing for interest differential as per Accounting Standard (AS) 16. In view of the clarification provided vide Ministry of Corporate Affairs circular 25/2012 dated 9th August 2012, the Company has exercised the option retrospectively from April 1, 2011 and the exchange loss amounting to Rs. 205.000 Millions representing the interest differential up to March 31, 2012 previously expensed has been reversed and corresponding adjustment has been made to the cost of Fixed Assets and FCMITDA as appropriate.
(iii) - Package Scheme of Incentive (PSI) During the previous quarter the Company has accrued for MVAT, CST and other duty benefits of earlier periods amounting to Rs. 160.700 Millions as per Industrial Promotion Subsidy (IPS) under Package Scheme of Incentive (PSI) 2007, of Government of Maharashtra, for its plant set up in Baramati. The aggregate impact of all the above exceptional items is Rs. Nil for the quarter ended December 31, 2012 and Rs. 105.700 Millions in the Profit from ordinary activities before tax of Rs. 3660.600 Millions for the Nine months ended December 31, 2012.
5 The Company has acquired 100% Equity Capital of BF Elbit Advanced Systems Private Limited. Accordingly, BF Elbit Advanced Systems Private Limited has become the wholly owned subsidiary (WOS) of the Company with effect from January 29, 2013
6 The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on February 8, 2013. The statutory Auditors of the Company have carried out a "Limited Review" of the results for the Quarter ended December 31, 2012.
SEGMENT WISE REVENUE, RESULTS AND
CAPITAL EMPLOYED FOR THE QUARTER ENDED 31ST DECEMBER, 2012
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.03.2012 (Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
Steel Forging |
6687.600 |
8613.100 |
24600.200 |
|
|
|
Gen. Engg. Trading etc |
47.700 |
62.600 |
168.600 |
|
|
|
Total |
6735.300 |
8675.700 |
24768.800 |
|
|
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
18.500 |
17.800 |
48.700 |
|
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
6716.800 |
8657.900 |
24720.100 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
Profit/ Loss before
tax and finance cost from each segment |
|
|
|
|
|
|
Steel Forging |
1238.000 |
2050.400 |
5524.000 |
|
|
|
Gen. Engg. Trading etc |
6.400 |
10.900 |
34.700 |
|
|
|
Total |
1244.400 |
2061.300 |
5558.700 |
|
|
|
Less :Interest |
363.300 |
289.400 |
1200.000 |
|
|
|
Less : Other Unallocable
Expenses and Extra Ordinary Items |
200.300 |
415.800 |
803.800 |
|
|
|
Net Profit (+) /
Loss(-) before Tax and exceptional items |
680.800 |
1356.100 |
3554.900 |
|
|
|
|
|
|
|
|
|
|
Exceptional items |
0.000 |
105.700 |
105.700 |
|
|
|
|
|
|
|
|
|
|
Total profit before
tax |
680.800 |
1461.800 |
3660.600 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
Steel Forging |
28207.100 |
27532.400 |
28207.100 |
|
|
|
Gen. Engg. Trading etc |
426.300 |
440.300 |
426.300 |
|
|
|
Unallocable assets and
liabilities |
|
|
|
|
|
|
- Investment in subsidiaries/ joint ventures |
5076.900 |
5076.900 |
5076.900 |
|
|
|
- Others |
11145.100 |
12305.900 |
11145.100 |
|
|
|
Total |
44855.400 |
45355.500 |
44855.400 |
|
|
|
|
|
|
|
|
4 |
|
Secondary
information in respect of geographical segment on the basis of location of
customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
3612.300 |
3991.000 |
11966.100 |
|
|
|
Exports |
3104.500 |
4666.900 |
12754.000 |
NOTES:
·
The Company has identified its
business segments as its primary reporting format which comprises of Forgings
and General Engineering. The main segment is Forgings. All products made by the
Company essentially emanate from forgings and therefore it is reported as an
independent business segment. General Engineering is a fabrication unit which
constitute a miniscule portion of the Company's activities.
·
The Company on a standalone basis
operates through a single geographical segment where all assets are located in
India. Secondary segment disclosures
have been made accordingly.
PRESS RELEASE:
BHARAT
FORGE THIRD QUARTER PERFORMANCE FY 13
PUNE,
08 FEBRUARY 2013
Bharat Forge Limited today announced its Q3 results with standalone
revenue at Rs. 6726.000 Millions, a decline of 28.5% over the same quarter last
year on back of 33.1% drop in export revenues.
The demand drop coupled with inventory destocking at OEM level led to
decrease in capacity utilization in Q3 FY13. We undertook manufacturing cuts to
reduce inventories and match our production levels with the new demand
environment.
Domestic revenues declined by 24.0% to Rs 3621.000 Millions on back of
continued slump in automotive demand and drop in sale of components to the
industrial sectors in India.
Export revenues declined by 33.1% to Rs 3105.000 Millions compared to Q3
FY12 on back of global decline in demand coupled with production cuts and block
closure by OEM to avoid pile up of inventory.
Standalone EBITDA declined by 42.0% to Rs 1387.000 Millions while PBT
before exchange gain/ (loss) and exceptional item decreased by 60.6% to Rs
644.000 Millions. PAT for the quarter reduced by 53.9% to Rs 475.000 Millions
compared to the corresponding quarter previous year.
The non- automotive business, which has been a key growth driver over
the past 2 -3 years was also impacted by reduction in demand globally for
infrastructure related products and solutions.
Commenting on the results of the company Mr. B N Kalyani, Chairman and
Managing Director said “On the back of continued weak and uncertain
macroeconomic fundamentals globally, the company witnessed a sharp drop in
demand across all sectors, customers and geographies in the export market in
addition to the continued weakness in the domestic market.
We have initiated series of measures aimed at tight cost control and
productivity improvements which has given some benefit in the quarter but we
expect the full benefit to flow in the coming quarters. The overall macro
environment is volatile with still a lot of uncertainty. However, at this point
we expect demand in the 4th quarter to continue at the same level as the
previous quarter but still lower year over year” he added.
PERFORMANCE
FOR SECOND QUARTER OF THE FINANCIAL YEAR 2012-13 STANDALONE REVENUES DECLINE BY
4.7% ON A YOY BASIS TO RS 8676.000 MILLIONS.
KEY HIGHLIGHTS
- Standalone revenues decline by 4.7% on
a YoY basis to Rs 8676.000 Millions.
- EBITDA margins maintained at 24% in Q2
FY13.
- Net Profit declines 3.4% on a YoY basis
to Rs 1028.000 Millions.
PUNE, 31ST OCTOBER
2012: Bharat Forge Limited today announced its Q2 results with standalone revenue
reaching Rs. 8676.000 Millions, a decline of 4.7% over the same quarter last
year on back of 16.2% drop in domestic revenues.
Domestic revenues declined by 16.2% to Rs 4009.000 Millions on back of
sluggish automotive demand and a significant drop in sale to industrial sectors
in India while export revenues recorded a marginal increase of 8.1% to Rs
4667.000 Millions compared toQ2 FY12 partially benefitting from better
realization on account of rupee depreciation.
Standalone EBITDA reduced by 5.1% to Rs 2074.000 Millions while PBT
before exchange gain/ (loss) and exceptional item decreased by 6.9% to Rs
1369.000 Millions. PAT for the quarter marginally reduced by 3.4% to Rs
1028.000 Millions compared to the corresponding quarter previous year.
Commenting on the results of the company Mr. B N Kalyani, Chairman and
Managing Director said “The quarterly performance continues to be impacted by
sluggish demand in the domestic market across automotive and industrial
sectors.
In an already weak global economic environment, further weakening of
demand has become increasingly evident around the globe across both automotive
and industrial sectors. All global OEM’s are adjusting their production level
to correct inventory levels leading to destocking of inventory across the
pipeline. We expect to witness downward pressure due to decline in demand
across auto and non-auto globally coupled with a sluggish domestic market in
the coming 2 -3 quarters” he added.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.26 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.