Bharat Forge jumped to a 52-week high of Rs 281.90 in morning trades on high expectations over its results for the fourth quarter and full year.
By 11:25 IST, the scrip of the forgings maker eased slightly, but was still up 3.15% to Rs 280. It recorded volumes of 42,668 shares on BSE by then. The scrip has risen 142% (to the 52-week high) from its 52-week low of Rs 116.50 on 21 May 2002.
Analysts are expecting superlative results from the company. BFL is expected to post a massive 268% rise in net profit to Rs 81 crore on a 40% increase in gross sales to Rs 663 crore (Rs 6.63 billion).
For the fourth quarter ended 31 March 2003, analysts expect the company to register a net profit of Rs 30 crore on a gross sales of Rs 183 crore (Rs 1.83 billion). There's also talk that the company may bag two huge export orders soon.
Going forward, too, the company should do well what with its heightened focus on exports and the garnering of some marquee customers of late. It should also secure added business from existing customers and acquisitions.
A few months back, BFL had bagged a large Chinese client, Guangxi Yuchai Machinery Co., which is part of the Second Auto Works group, one of the largest auto companies in China. BFL has signed a long-term contract with the company for the supply of engine components. This business will begin ramping up in the second quarter of FY 2003-04.
BFL is the flagship company of the Kalyani Group. It is the largest forgings company in Asia and one of the three largest and most technologically advanced commercial forge shops in the world. The company manufactures a wide range of forgings and machined components for the automotive, diesel engine, railway, earthmoving, cement, sugar, steel, coal, shipbuilding and oilfield industries as also general engineering equipment.
Its product range includes finished machined crankshafts, sub-assembly of industrial machinery, axle beams, steering knuckles, connecting rods, automotive engine and suspension components, etc. It is the number one axle component manufacturer in the world (25% world market share) and the number two engine component manufacturer in the world. Engine and axle components together account for 80% of the company's total sales.
The company's domestic clients include large OEM players like Ashok Leyland, Telco, Mahindra, Eicher, Escorts, Maruti Udyog, Bajaj Auto, Cummins, BEML, etc. Its export clients are Meritor Automotive, First Auro Works, Dana Corporation, Mercedes Benz, New Holland Ford, Mitsubishi Motor Corporation, Volvo Trucks, Lister-Petter, Dirona, Renault, Toyota, Daimler Chrysler, Spicer, Sang Motors, Caterpillar-Perkins, Isuzu, Macimex amongst others
Over the years, BFL has created world class capacities and capabilities. It is the second company in the world to have two 16,000 MT forging lines with an installed capacity of 102,900 MT per annum. It possesses the largest single location commercial forging facility in the world.
The company's financial performance for Q3 has been robust. While sales rose 46% to Rs 180.54 crore (Rs 1.8 billion) in Q3 ended 31 December 2002, PAT jumped 239% to Rs 21.36 crore. For the quarter ended 31 December 2002, the company recorded export revenues of Rs 74.68 crore, an increase of 154.3% over the corresponding period of the previous year. Sequentially, exports have grown by 4.3%. For the quarter ended 31 December 2002, the company recorded domestic revenues of Rs 105.86 crore (Rs 1.05 billion), an increase of 12.4% over the corresponding period of the previous year.
As on 31 March 2003, the promoters' holding in the company was 37.26%, while the public and institutions held 22.63% and 24.80%, respectively.
BSE code: 500493
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