Shares of the company involved in manufacturing and selling forged and machined components surged nearly 2 percent after the announcement of its collaboration plans with U.S. defence companies for the development of next-generation artillery gun platforms.
Share Price Movement
In Thursday’s trading session, the share price of Bharat Forge Limited gained 1.7 percent reaching an intra-day high of Rs.1,551.00 per share from its previous close of Rs.1,530.20 apiece. The share price has retreated since then and is currently trading at Rs.1,518.95 per share.
What happened
Kalyani Strategic Systems Ltd, a subsidiary of Bharat Forge Ltd in India, plans to enter into a multi-party agreement with U.S. defence companies AM General and Mandus Group LLC to co-develop next-generation artillery gun platforms.
With evolving battlefield demands, there is an increasing need for modern light artillery systems that provide enhanced firepower, precision strikes, and improved tactical mobility. This collaboration aims to equip modern armies with compact, lightweight, ruggedized 105mm and 155mm artillery systems suitable for all weather and terrains.
The next-gen platforms will feature advanced technology, responsive fire capabilities, improved transportability, and increased lethality while optimizing crew size due to reduced logistics needs. The 105mm and 155mm howitzers will offer superior firepower and mobility in a lightweight, modular design.
Management Commentary
Commenting on the development, Baba Kalyani, Managing director of Bharat Forge said, “Bharat Forge is rapidly emerging as a leading developer and manufacturer of advanced artillery platforms for the world markets. This strategic collaboration aims to co-develop and co-produce the most versatile and innovative weapon systems.”
“AM General and Mandus Group are looking forward to exploring this collaboration with Kalyani and Bharat Forge to ultimately deliver advanced mobile artillery capabilities,” said John Chadbourne, AM General EVP for Business Development.
Financial Performance
According to its recent financial update, Bharat Forge Limited reported net sales of Rs.4,106 crore for Q1 FY25, marking a 6 percent increase from Rs.3,877 crore in the same quarter last year. However, the company’s net profit fell to Rs.175 crore, down from Rs.214 crore in the same period.
Company Overview
Bharat Forge Limited (BFL) is a global provider of innovative safety and critical components across multiple sectors, including Defence. Its Defence vertical, Kalyani Strategic Systems Ltd (KSSL), focuses on artillery systems and defence electronics, having developed over 10 platforms, including mounted, towed, and ultra-light gun systems in 155mm and 105mm calibers.
Written by – Siddesh S Raskar
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