Indian auto-component and forging giant Bharat Forge’s net profit dipped by 94.76 per cent to Rs 4.14 crore during July-September as against Rs 79.13 crore during the corresponding period last year. The decline was due to the cross-currency losses worth Rs 87.51 crore along with damages of Rs 24.05 crore paid to a client during the quarter. The company’s revenues, however, grew by 28.23 per cent to Rs 1,359.78 crore during the quarter from Rs 1,060.36 crore during July-September last year.
During February 2007, a Bharat Forge unit had seen a breakdown following which, the company could not meet a client’s orders. The company has already placed an insurance claim of Rs 32.9 crore to recover the damages paid to its client, it said in a statement.
Bharat Forge Chairman and Managing Director Baba Kalyani said, “The company has grown despite non-conducive market conditions globally. The issues in our end-user industry have been further compounded by the global financial crisis and its impact on industries is posing challenges across all sectors.”
Kalyani added, “Our non-auto capacity expansion programme at Baramati and Pune is complete and trials have begun. We plan to start serial production from the fourth quarter of this year at both the facilities. The non-auto facilities are coming onstream at a time when the global auto markets are in deep slump. These facilities will generate additional business and help us cushion the impact of the fall in business in other sectors to some extent.”