The forging company on Tuesday announced that it has made an additional investment of $40 million (Rs 334.04 crore) in its wholly owned subsidiary, Bharat Forge America (BFA).
The company said that this investment falls within the pre-approved limits of the board resolution dated 14 November 2022.
The funds are intended for further investment by BFA into its wholly-owned subsidiary - Bharat Forge Aluminum USA Inc. (BFAL), to facilitate BFALs capital expenditure for aluminum forging facility, the company stated.
BFAL produces and supplies aluminum automotive components for the auto industry. BFAL had a turnover of $60.73 million for the period April 2023 March 2024.
Accordingly, the investment by the company in BFA and the proposed investment in BFAL is to facilitate BFALs capital expenditure for aluminum forging facility and is in furtherance of BFALs main line of business, the company stated in the press relase.
The company will continue to hold 100% of shareholding in BFAL through BFA. The investment will tentatively be completed by 21 June 2024.
Bharat Forge manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.
The companys standalone net profit jumped 59.23% to Rs 389.65 crore in the quarter ended 31 March 2024 as compared with Rs 244.52 crore recorded in the quarter ended 31 March 2023. Revenue from operations increased 16.59% to Rs 2328.58 crore in Q4 FY24, driven by execution on defence export order and Passenger vehicle exports.
The scrip rose 0.32% to currently trade at Rs 1,701.70 on the BSE.
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