Pune-based leading forging firm Bharat Forge witnessed a 3 per cent rise in its shares during Wednesday’s trading session subsequent to the announcement of its financial results for the June quarter.
The company had posted a consolidated net profit of ₹160.37 crore in the same quarter last fiscal, Bharat Forge said in a regulatory filing.
The stock gained momentum as the company revealed its endorsement of the transformation of existing intercorporate deposits granted by the company to its wholly owned subsidiary, Kalyani Powertrain Limited (KPTL).
This conversion includes the accrued interest, totalling Rs. 111.30 crores, into equity shares.
Also Read: Bharat Forge Q1 results: Net profit rises to ₹213.73 crore
The move is aimed at decreasing the collective borrowing burden of KPTL and is particularly noteworthy as the subsidiary serves as the hub for all of Bharat Forge’s ventures related to electronic vehicles.
“Approved conversion of existing intercorporate deposits KPTL, a wholly owned subsidiary of the Company, along with interest thereon, amounting to Rs. 1,113 Million, into equity shares, to reduce the overall borrowings at KPTL.
The board of Bharat Forge also approved further investment of an amount not exceeding Rs. 1,500 Million in KPTL from time to time, in one or more tranches.
The company had posted a consolidated net profit of ₹160.37 crore in the same quarter last fiscal, Bharat Forge said in a regulatory filing.
Consolidated revenue from operations was at ₹3,877.27 crore as against ₹2,851.46 crore in the year-ago period, it added.
Revenues at ₹21,273 million in Q1FY24 grew by 21% YoY driven by 12.5% growth in export and 33.6% growth in domestic revenue. Domestic revenues in Q1 FY24 also include the supply of artillery system to KSSL for the defence export order won last year.
Download The Mint News App to get Daily Market Updates & Live Business News.
Updated: 09 Aug 2023, 02:57 PM IST