Bharat Forge fell 2.82% to Rs 629.85 after the company reported a consolidated net loss of Rs 210.44 crore in Q3 FY21 as against net profit of Rs 40.43 crore in Q3 FY20.
The profit was impacted due to an exceptional loss of Rs 299.45 crore in Q3 FY21.During the quarter ended 31 December 2020, Germany's National Competition regulator (Federal Cartel Office)(FCO) concluded the settlement with the company's German subsidiaries. Accordingly, an amount of Rs 274.26 crore has been provided for in the quarter ended 31 December 2020 in consolidated results towards such settlement including related expenses. The settlement amount will be paid over the period of next five years.
The company recorded an expense of Rs 5.47 crore for the quarter in standalone results on account of "Voluntary Retirement Scheme (VRS)" declared by the company for its employees at Mundhwa and Satara plant.
The firm also posted an expense of Rs 19.71 crore for the quarter in consolidated results on manpower optimzation in overseas subsidiaries.
Revenue from operations fell 6% to Rs 1723.11 crore in Q3 FY21 over Q3 FY20. The result was announced during market hours today, 12 February 2021.
Bharat Forge announced a pre-tax loss of Rs 175.95 crore in Q3 FY21 as against a profit before tax of Rs 49.91 crore registered in Q3 FY20. Total tax expense were steeply higher at Rs 34.49 crore in Q3 FY21 from Rs 9.48 crore in Q3 FY20.
Consolidated EBITDA stood at Rs 311.40 crore in Q3 FY21, increasing 31.9% as against Rs 236.10 crore in Q3 FY20. EBITDA margins improved by 520 basis points to 18.1% Q3 FY21 from 12.9% in Q3 FY20.
Commenting on company's Q3 result, B.N. Kalyani chariman and MD of Bharat Forge, said: "The strong recovery in end market demand across sector continued into this quarter enabling the company to register healthy double-digit growth in key parameters. On a sequential basis, Revenues, EBITDA & PBT grew by 17.5%, 39.9% & 42.2% respectively. The union budgets focus on infrastructure development along with the vehicle scrapping policy bodes well for both the Commercial Vehicles & Industrial sector growth over the medium term. The government's recent announcement on Production Linked Incentive (PLI) coupled with the mission of AtmaNirbharta are major steps in enhancing the scale & competitiveness of manufacturing in India. We expect these initiatives to open up new growth opportunities for the company. Looking ahead to into the coming quarter, demand is expected to remain robust across all key geographies & sectors. In the export market, we are witnessing demand recovery across sectors."
Bharat Forge's long-term debt as of 31 December 2020 stood at Rs 2313.7 crore, slightly higher than debt of Rs 1835.1 crore in 31 March 2020. The debt equity ratio (D/E) also increased to 0.66 in December 2020 from 0.61 in March 2020.
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries.
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