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Kalyani Group-owned Bharat Forge has reported a net profit of Rs 205.4 crore in the January to March 2021 quarter. This is a massive increase compared to March 2020 quarter when the company had to face a loss of Rs 73.3 crore. Bharat Forge revealed this information on Friday in an exchange filing. In addition, the company’s revenue from operation jumped to Rs 1,307 crore in the quarter ending in March 2021 from Rs 881 crore generated during the corresponding quarter of the financial year 2019-20.
The revelation of the company’s earnings bought cheer to the market, with Bharat Forge’s share price on NSE closing at Rs 749.85, an increase of 7.79% or 53.95 points over yesterday.
In good news for shareholders of Bharat Forge, the company’s board has recommended a final dividend of Rs 2 per share for the financial year 2020-21. “Recommended a final dividend of Rs. 2/- per equity share of the face value of Rs. 2/- each (at the rate of 100%) for the financial year ended March 31, 2021, subject to the approval of the Members of the Company at the ensuing Annual General Meeting,” the company said in its regulatory filing. It also added that if approved, the dividend on or after 20 August 2021.
BN Kalyani, Chairman and Managing Director of Bharat Forge, expressed optimism and said that the financial year 2020-21 has ended with a sharp recovery in all the end markets of the company. “Q4FY21 has witnessed a 26.2% growth in sales on the back of 43% growth in exports, which is now witnessing growth in all key segments. Despite cost inflationary pressures, EBITDA% has increased by 310 bps, he emphasized.
On his outlook for the financial year 2021-22, Kalyani believes that weakness witnessed due to the second wave of Covid-19 was temporary in nature and that Bharat Forge will witness growth as business activity normalizes in the country. “We are seeing robust demand continue in the major segment in the export business,” Kalyani added.
Meanwhile, in the stock market, both BSE Sensex and Nifty 50 closed at red, falling to 52,100(down 132 points) and 15,670 points(down 20 points) respectively.