Pune-based Bharat Forge Limited has posted a net loss of Rs 210.4 crore for the quarter ended December 2020 following a settlement with Germany’s national competition regulator. Bharat Forge is one of the leading forging companies in India. The company had posted a consolidated net profit of Rs 40.44 crore in the same quarter last fiscal year.
Consolidated revenue from operations declined 5.9 percent year-on-year to Rs 1,723.1 crore in Q3FY21.
At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 27.7 percent to Rs 283.7 crore YoY, while the margin increased 440 bps to 16.5 percent compared to corresponding period.
During the quarter ended December 2020, Germany’s competition regulator (Federal Cartel Office) concluded the settlement with the company’s German subsidiaries. An amount of Rs 274.27 crore has been provided for in the quarter and nine months period ended December 2020 in consolidated results towards such settlement including related expenses, Bharat Forge said, adding the settlement amount would be paid over the period of next five years.
Exceptional loss also included expenses of Rs 5.47 crore on account of voluntary retirement scheme for employees at Mundhwa and Satara plants and expenses of Rs 19.71 crore on manpower optimisation in overseas subsidiaries.
“The strong recovery in end-market demand across sector continued into in Q3FY21, enabling the company to register healthy double-digit growth in key parameters. On a sequential basis, revenues, EBITDA and profit before tax grew by 17.5 percent, 39.9 percent and 42.2 percent respectively,” said Baba Kalyani, Chairman & Managing Director.