The shares of the leading forging company gained up to 1.2 percent after the company announced an equity share acquisition of Kalyani Powertrain Limited worth Rs 105 crore.
With a market capitalization of Rs 75,620.64 crore, the shares of Bharat Forge Ltd were trading at Rs 1,624.50 per share, increasing around 0.33 percent as compared to the previous closing price of Rs 1,620.05 apiece.
Reason For Rise:-
According to the company filing, Bharat Forge Ltd announced the acquisition of 10,54,50,000 equity shares of Kalyani Powertrain Limited worth Rs 105 crore. This strategic investment is to house all the e-mobility initiatives of the company under KPTL, and Bharat Forge will continue to hold 100 percent of the shareholding in KPTL.
Financial performance:-
Looking into Bharat Forge Ltd’s financial performance, revenue zoomed by 6 percent, from Rs 3,877 crore in Q4FY23 to Rs 4,106 crore in Q4FY24. During the same period, net profit soared by 18 percent, from Rs 214 crore to Rs 175 crore.
The BFL group’s military sector generated sales of Rs 1,561 crore, an almost fourfold increase over FY23. The business received fresh orders totaling Rs 4,494 crore for artillery systems, armored vehicles, and consumables.
Order book:-
The company has executable order book stands at Rs 5,192 Crores as of March 31, 2024. Over the last two years, the company has made significant progress in lowering customer and sector concentration, resulting in a more balanced business mix across Automotive, Construction and Mining, Hydraulics, and Wind Energy.
Ratio analysis:-
In terms of major financial measures, the firm recorded a return on equity of 13.26% and a return on capital employed of 19.23% for the fiscal years 23-24. In addition, the net profit margin was 5.76 percent within the same time period.
Company profile:-
Bharat Forge Limited manufactures safety and essential components for sectors including automotive, railroads, defense, construction, mining, aerospace, marine, and oil & gas. Forgings and Others are two of the company’s business segments.
Written by:- Abhishek Singh
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