BHARAT FORGE - STAND ALONE RESULTS OK. Q4 GOOD - FUTURE NEEDS WATCH

BHARAT FORGE

FY 09 VS FY 10

PERFORMANCE

The consolidated performance has been unimpressive for Bharat Forge in FY 10 as can be seen from the table below.

Basic EPS is a negative -3.07  in FY 10, from a positive 2.62 in FY 09 last year. Sales, Costs, Net profit and consolidated Net profit are all considerably down.

On a stand alone basis, Sales are marginally down by -9%. Expenditure is down by  -10%.

Net Profit is therefore up by 23%.

Stand alone Basic EPS is up from Rs.4.51 to Rs.5.71, up by 26.61%.

When we review quarterly performance, we find that sales, expenditure and net profits have gone up in Q4 considerably.

Basic EPS in Q4 has therefore gone up to Rs.2.76 from Rs.1.7 in Q3 and  Rs.2.63 In Q4 of FY 09 on A face value of Rs.2. Of the 4 Qs of FY 10, Q4  is certainly very impressive.

But then, the Q4 of FY 09 also has a similar performance.

It is therefore not clear whether Q4 performance is a sustainable performance. and will it be improved upon in future. We need to watch for next quarter results for assessing the trend further.

"The scenario is starting to look quite encouraging for the company. On the auto business we are witnessing strong momentum, coupled with clear signs of recovery in the North American commercial vehicle market," Bharat Forge chairman and MD, Baba N Kalyani has said.

   
He said the company, which specialises in forgings and machine components, has also performed well in the non-auto business. "With new order wins on auto and non-auto at the component level, we are looking at a significant growth in the company's business in the days to come.,"

CONSOLIDATED FIGURES

FY 09 VS FY 10
IN LAKHS (RS)

Consolidated Figures	FY09	FY10	%Age
Net Sales	471060	328521	-30.26
Other Operating Income	6344	4239	-33.18
Raw Materials	248962	155840	-37.4
Employees Cost	70916	52385	-26.13
Depreciation	25173	24512	-2.63
Other Expenditure	110163	83259	-24.42
Total Expenditure	446930	323423	-27.63
O P T	30474	9337	-69.36
Other Income	6871	5112	-25.6
Interest	12914	13030	0.9
Exceptional items	13362	7873	-41.08
P B T	11069	-6454	-158.31
Tax Expense	6958	1190	-82.9
Net Profit	4111	-7644	-285.94
Minority Interest	-1761	-1318	-25.16
Shares of Associates	46	16	-65.22
Consolidated Net Profit	5826	-6342	-208.86
Face Value (in Rs.)	2	2	0
Paid-up Equity	4454	4454	0
Reserves	160134	141845	-11.42
Basic EPS	2.62	-3.07	-217.18

STAND ALONE

PERFORMANCE

NON-CONSOLIDATED	FY09(lakhs)	FY10	%AGE
Net Sales	199411	181401	-9.03
Raw Materials	101355	84957	-16.18
Other Expenditure	49295	45342	-8.02
Total Expenditure	176203	158385	-10.11
OPT	29552	27255	-7.77
Interest	10037	10277	2.39
Exceptional items	8628	2141	-75.19
P B T	15767	18071	14.61
Tax Expense	5438	5367	-1.31
P A T	10329	12704	22.99
Net Profit	10329	12704	22.99
Dividend (%)	50	50	0
Face Value (Rs.)	2	2	0
Paid-up Equity	4454	4454	0
Reserves	144239	148267	2.79
Basic EPS (Rs.)	4.51	5.71	26.61

QUARTERLY PERFORMANCE

(IN LAKHS)

Quarter Ended	10-Mar-10	31-Dec-09	30-Sep-09	30-Jun-09	31-Mar-09
Net Sales	54649	49585	42009	35158	28341
Total Expnditr	46606	42964	36599	32216	27980
Net Profit	6126	3799	2683	96	6113
Dividend (%)	50	-	-	-	50
F.V-In Rs	2	2	2	2	2
Paid Up Equity	4454	4454	4454	4454	4454
Basic EPS	2.76	1.7	1.21	0.04	2.63

ANNOUNCEMENTS TO

THE EXCHANGE

22-05-2010        Bharat Forge Limited has informed the Exchange that the Board of Directors at its Meeting held on May 22, 2010, taken on record that the Company has received a contract for EPC for an Independent Power Project (IPP) for a 3 X 150 MW Power Project. The Board has authorized the Company to execute the EPC activity under 100% subsidiary of Bharat Forge Limited.       -

22-05-2010        Bharat Forge Limited has informed the Exchange that the Board of Directors at its meeting held on May 22, 2010 have recommended a Dividend of Rs.1/- per Equity Share (50%), subject to approval of shareholders. -

22-05-2010        Bharat Forge Limited has informed the Exchange regarding a press release dated May 22, 2010 , titled " Performance for the quarter & Year ended March 31, 2010; Impressive Standalone topline Growth of 92.3% & PBT of Rs. 82 crores for the Quarter".

29-04-2010        Bharat Forge Limited has informed the Exchange that the Committee of Boards of Directors of the Company at its meeting held on April 28, 2010 has allotted following securities to the Qualified Institutional Buyers under Qualified Institutional Placements (QIP) : (1) 10,000,000 Equity Shares of Rs.2 each at a price of Rs. 272 per Equity Share (including premium of Rs.270 per Equity Share), aggregating to Rs.2,720 million; (2) 1760, 10.75% Secured Redeemable Non-Convertible Debentures of face value of Rs.1000,000 aggregating to Rs.1,760 million, along with; (3) 6,500,000 Warrants at a warrant issue price of Rs.2 per Warrant, aggregating to Rs.13 million. The warrant holder is entitled to exchange each said warrant with one Equity Share, at any time during the warrant exercise period, at a warrant exercise price of Rs. 272 per Equity Share.

26-04-2010        Bharat Forge Limited has informed the Exchange that the Committee of Board of Directors of the Company has declared the closure of the issue to Qualified Institutional Buyers with effect from April 26, 2010 with respect to the Private placement of Equity Shares along with Secured Redeemable Non Convertible Debentures and Warrants ("Issue") under Chapter VIII of Securities and Exchange Board of India (Issue of Capital and Disclosure requirements), 2009 ("SEBI ICDR Regulations") by Bharat Forge Limited (the "Company"). Further the Company has submitted a copy of the Committee meeting resolution with respect to the closure of the issue, fixation of the issue size and price, adoption of the Placement Document and admission of securities with depositories. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). For more details click here.    -

22-04-2010        Bharat Forge Limited has informed the Exchange that "The audited unconsolidated financial statements for the year ended 31st December, 2009 of the following subsidiaries namely, CDP Bharat Forge GmbH, Germany; Bharat Forge Aluminiumtechnik GmbH & Co. KG, Germany; Bharat Forge Kilsta AB, Sweden; Bharat Forge Scottish Stampings Ltd., UK; Bharat Forge America Inc., USA and FAW Bharat Forge (Changchun) Co. Ltd., China have been hosted on the Company's website - www.bharatforge.com. The audited unconsolidated financial statements in respect of these foreign subsidiaries have been prepared in accordance with the Generally Accepted Accounting Principles ('GAAP') of the respective Country". -

21-04-2010        Bharat Forge Limited has informed the Exchange that "The Company has on April 20, 2010, redeemed Foreign Currency Convertible Bonds (FCCBs) (Tranche 1 & Tranche 2), aggregating US $ 131,487,592.50 (includes principal of US $ 102,250,000 and redemption premium of US $ 29,237,592.50) in terms of Offering Circular dated April 15, 2005. In 2005, the Company had issued the said FCCBs, optionally convertible into GDRs/Equity Shares, in two tranches aggregating US $ 120 million, mainly to finance capital expenditure and global acquisitions. Out of FCCBs of US $ 120 million, US $ 17.750 million were converted into GDRs/Equity shares during the tenure of FCCBs."    -

20-04-2010        Bharat Forge Ltd has informed the Exchange that the Committee of Directors of the Company appointed for the purpose, at its meeting held on April 09, 2010, have approved the conversion of 1,250 FCCBs (Tranche 2) into 1,42,045 Equity Shares of Rs.2/- each in terms of the Offering Circular dated April 15, 2005 as per request received from FCCBs Holder viz. Citigroup Global Markets.         -

15-04-2010        Bharat Forge Ltd has informed the Exchange that Company would be publishing / furnishing to the Stock Exchanges the Audited Financial Results for the year ending March 31, 2010 within 60 Days from the end of the last quarter of the year i.e. March 31, 2010 and, therefore, not publishing / furnishing to the Stock Exchanges the Unaudited Financial Results for the last quarter of the year i.e. March 31, 2010.