Bharat Forge Q1 net profit up 25.81% to Rs.64.81 Crores

Bharat Forge Ltd has announced the unaudited financial results for the quarter ended June 30, 2007.

The Company has posted a profit after tax of Rs 648.13 million for the quarter ended June 30, 2007 as compared to Rs 515.15 million for the quarter ended June 30, 2006. Total Income (net of excise) has increased from Rs 4438.21 million for the quarter ended June 30, 2006 to Rs 5502.17 million for the quarter ended June 30, 2007.

The Consolidated results are as follows: The Group has posted a net profit after tax of Rs 804.31 million for the quarter ended June 30, 2007 as compared to Rs 736.15 million for the quarter ended June 30, 2006. Total Income has increased from Rs 10114.53 million for the quarter ended June 30, 2006 to Rs 11152.92 million for the quarter ended June 30, 2007.

The company has reported an Earnings Per Share (EPS) of Rs.2.9 for the Quarter ending June 30, 2007 compared to Rs.2.3 for Quarter ending June 30, 2006.

The Company through its wholly owned subsidiary, Bharat Forge Betelligungs, GMbh acquired 30% Equity of Tecnica UK Ltd vide an agreement dated April 24, 2007.

Company had issued 0.5% Foreign Currency Convertible Bonds (FCCB) due 2010 in two Trenches (Tranche 1 & 2), each having varied rights and obligations aggregating US $ 60 million each, convertible at an initial price of Rs 336.11 and Rs 384.12 per share of Rs 2/- each respectively subject to adjustments specified in the offering circular dated April 15, 2005. In view of the current market price of the Company´s equity Shares being less than the Floor price for exercise, in respect of both the tranches of the Bonds, the option embedded in the said Bonds to subscribe to Equity shares is, at present, antidilutive.

Company had further issued Zero Coupon Foreign Currency Convertible Bonds (FCCB) in two tranches (viz. Tranche A and Tranche B) amounting to USD 40.00 million and USD 39.90 million due 2012 and 2013 respectively each having varied rights and obligations and optionally convertible at an Initial price of Rs 604.03 and Rs 690.32 per share of Rs 2/- each respectively subject to adjustment specified in the offering circular dated April 24, 2006. Since the current market price of the Company´s Equity Shares being less than the Floor price in respect of both the Tranches of the Bonds, the option embedded in the said Bonds to subscribe to Equity Shares is, at present, antidilutive.

Pending utilisation, funds raised out of FCCB and GDR have been temporarily place in Fixed Deposits and Investments which generated an Income aggregating Rs 140.95 million during the quarter (Previous period Rs 145.24 million, Previous year Rs 696.47 million).

The stock was trading at Rs.310.45, up by Rs.5.30 or 1.74%. The stock hit an intraday high of Rs.316.95 and low of Rs.305. The total traded quantity was 161723 compared to 2 week average of 247958.

Source : Equity Bulls

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