Bharat Forge : Quarterly Results for Jun 2021

BHARAT FORGE LIMITED

Regd. Office : Mundhwa, Pune Cantonment, Pune 411 036,

Maharashtra, India.

CIN:L25209PN1961PLC012046

Ph. No. : 91-20-6704 2777 / 2476, Fax No. : 91-20-2682 2163

Email : [e-mail]; Website : www.bharatforge.com

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

					(` in Million)
			Quarter ended
		June 30,	March 31,	June 30,	March 31,
Sr. No.	Particulars	2021	2021	2020	2021
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
			( See note 4)
1	Income
	a) Revenue from operations	13,718.45	13,073.46	4,269.70	36,515.12
	b) Other income	332.92	319.61	419.61	1,404.57
	Total income	14,051.37	13,393.07	4,689.31	37,919.69
2	Expenses
	a) Cost of raw materials and components consumed	5,379.78	5,559.43	1,334.09	14,958.69
	b) Changes in inventories of finished goods,
	work-in-progress, dies and scrap	(168.85)	(293.69)	510.27	(814.15)
	c) Employee benefits expense	1,216.38	1,134.31	1,137.81	4,482.37
	d) Depreciation and amortisation expense	1,019.03	1,006.20	808.35	3,660.75
	e) Finance costs	405.68	136.55	299.01	779.15
	f) Other expenses (see note 5)	3,377.36	3,082.53	1,315.83	10,611.98
	Total expenses (a to f)	11,229.38	10,625.33	5,405.36	33,678.79
3	Profit/(loss) before exceptional items and tax (1-2)	2,821.99	2,767.74	(716.05)	4,240.90
4	Exceptional items (expenses) (see note 3)	(616.47)	(8.03)	-	(91.83)
5	Profit/(loss) before tax (3+4)	2,205.52	2,759.71	(716.05)	4,149.07
6	Income tax expense / (credit)
	a) Current tax	586.32	540.26	-	882.21
	b) Deferred tax	(47.69)	164.97	(152.96)	145.92
	Income tax expense / (credit)	538.63	705.23	(152.96)	1,028.13
7	Profit/ (loss) for the quarter/year (5-6)	1,666.89	2,054.48	(563.09)	3,120.94
8	Other comprehensive income
	a) Other comprehensive income/(loss) not to be reclassified
	to profit and loss in subsequent period	135.47	18.94	13.01	213.01
	- Tax effect	1.19	(8.29)	5.40	(15.17)
	b) Other comprehensive (loss) /income to be reclassified
	to profit and loss in subsequent period	(386.34)	993.38	627.19	3,490.90
	- Tax effect	128.49	(280.92)	(156.47)	(874.04)
	Other comprehensive (loss) /income (Net of tax)	(121.19)	723.11	489.13	2,814.70
9	Total comprehensive income/(loss) (7+8)	1,545.70	2,777.59	(73.96)	5,935.64
10	Earnings per share
	- Basic and diluted (in `) (not annualised for quarters)	3.58	4.41	(1.21)	6.70
11	Equity share capital (Face Value ` 2/- each)	931.27	931.27	931.27	931.27
12	Other equity				58,555.00
	Additional Information :
	Profit before tax and before other income, depreciation and	3,909.67	3,337.87	17.29	7,347.81
	amortisation expense, finance costs, exchange gain/(loss) included
	in other expenses (see note 5) and exceptional items
	Profit/(loss) before tax, before exchange gain/(loss) included in	2,817.88	2,514.73	(670.46)	4,312.48
	other expenses (see note 5) and exceptional items

BHARAT FORGE LIMITED

Regd. Office : Mundhwa, Pune Cantonment, Pune 411 036,

Maharashtra, India.

CIN:L25209PN1961PLC012046

Ph. No. : 91-20-6704 2777 / 2476, Fax No. : 91-20-2682 2163

Email : [e-mail]; Website : www.bharatforge.com

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

					(` in Million)
			Quarter ended
Sr.		June 30,	March 31,	June 30,	March 31,
Particulars	2021	2021	2020	2021
No.
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
			(See note 4 )
1	Income
	a) Revenue from operations	21,076.77	20,828.49	11,542.11	63,362.61
	b) Other income	407.16	523.79	450.34	1,688.98
	Total income	21,483.93	21,352.28	11,992.45	65,051.59
2	Expenses
	a) Cost of raw materials and components consumed	9,214.33	9,163.03	4,237.39	24,800.94
	b) Purchase of traded goods	294.51	532.80	205.64	1,737.16
	c) Changes in inventories of finished goods, traded goods
	work-in-progress, dies and scrap	(2,050.43)	(1,261.82)	1,016.97	(196.54)
	d) Employee benefits expense	3,288.70	2,725.62	2,971.88	10,710.60
	e) Depreciation, amortisation and impairment expense	1,667.75	1,606.34	1,385.46	6,121.59
	f) Finance costs	500.67	229.30	367.69	1,077.29
	g) Other expenses (see note 5 )	5,826.87	5,411.04	3,251.17	17,693.07
	Total expenses (a to g)	18,742.40	18,406.31	13,436.20	61,944.11
3	Profit/ (loss) before share of (loss) of associates,
	joint ventures, exceptional items and tax (1-2)	2,741.53	2,945.97	(1,443.75)	3,107.48
4	Share of (loss) of associates and joint ventures	(90.78)	(250.30)	(19.00)	(304.09)
	Income tax expense	0.30	(5.01)	-	(4.35)
	Share of (loss) of associates and joint ventures after tax	(91.08)	(245.29)	(19.00)	(299.74)
5	Profit/(loss) before exceptional items and tax (3+4)	2,650.45	2,700.68	(1,462.75)	2,807.74
6	Exceptional items (expenses) (see note 3 )	(616.47)	(8.03)	-	(3,062.28)
7	Profit/(loss) before tax (5+6)	2,033.98	2,692.65	(1,462.75)	(254.54)
8	Income tax expense/ (credit)
	a) Current tax	587.16	542.93	2.02	906.56
	b) Deferred tax	(80.66)	28.49	(191.55)	108.56
	Income tax expense/ (credit)	506.50	571.42	(189.53)	1,015.12
9	Profit/(loss) for the quarter/year (7-8)	1,527.48	2,121.23	(1,273.22)	(1,269.66)
10	Other comprehensive income
	a) Other comprehensive income/(loss) not to be reclassified
	to profit and loss in subsequent period	136.75	(113.50)	12.66	123.22
	- Tax effect	1.19	24.94	5.40	4.54
	b) Other comprehensive (loss)/ income to be reclassified
	to profit and loss in subsequent period	(560.94)	1,129.20	820.76	3,970.68
	- Tax effect	128.49	(280.92)	(157.47)	(875.54)
	Other comprehensive income/(loss) (Net of tax)	(294.51)	759.72	681.35	3,222.90
11	Total comprehensive Income/(loss) (9+10)	1,232.97	2,880.95	(591.87)	1,953.24
12	Total comprehensive income/(loss) above attributable to:
	- Owners of the parent	1,241.88	2,845.78	(578.69)	1,956.18
	- Non-controlling interest	(8.91)	35.17	(13.18)	(2.94)
13	Of the total comprehensive income/(loss) above,
	profit/(Loss) for the period/year attributable to:
	- Owners of the parent	1,536.49	2,086.06	(1,258.11)	(1,263.81)
	- Non-controlling interest	(9.01)	35.17	(15.11)	(5.85)

BHARAT FORGE LIMITED

Regd. Office : Mundhwa, Pune Cantonment, Pune 411 036,

Maharashtra, India.

CIN:L25209PN1961PLC012046

Ph. No. : 91-20-6704 2777 / 2476, Fax No. : 91-20-2682 2163

Email : [e-mail]; Website : www.bharatforge.com

STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

					(` in Million)
			Quarter ended
Sr.		June 30,	March 31,	June 30,	March 31,
Particulars	2021	2021	2020	2021
No.
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
			(See note 4 )
14	Of the total comprehensive income above,
	Other comprehensive income/(loss) for the year attributable to:
	- Owners of the parent	(294.61)	759.72	679.42	3,219.99
	- Non-controlling interest	0.10	-	1.93	2.91
15	Earnings per share
	Basic and diluted (not annualized for quarters) (in `)	3.30	4.48	(2.70)	(2.71)
16	Equity share capital (Face Value ` 2/- each)	931.27	931.27	931.27	931.27
17	Other equity				53,219.92
	Additional Information :
	Profit before share of profit /(loss) of associates, joint ventures, tax	4,546.41	3,767.85	83.26	8,633.55
	and before other income, depreciation, amortization and impairment
	expense, finance costs, exchange gain/(loss) included in other
	expenses (see note 5 ) and exceptional items
	Profit/(loss) before share of profit/(loss) of associates, joint ventures,	2,785.15	2,456.00	(1,219.55)	3,123.65
	tax, before exchange gain/(loss) included in other expenses (see note
	5 ) and exceptional items

BHARAT FORGE LIMITED

Regd. Office : Mundhwa, Pune Cantonment, Pune 411 036,

Maharashtra, India.

CIN: L25209PN1961PLC012046

Ph. No. : 91-20-6704 2777 / 2476, Fax No. : 91-20-2682 2163

Email : [e-mail], Website : www.bharatforge.com

STATEMENT OF STANDALONE AND CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

NOTES TO FINANCIAL RESULTS

1 Consolidated segment wise revenue, results and capital employed for the quarter ended June 30, 2021.

The Group's business is divided into two reporting segments which comprises of "Forgings" and "Others" which represents the Group's businesses not covered in Forgings segment. The Chief Operating Decision Maker monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment based on an analysis of various performance indicators.

The "Forgings" segment produces and sells forged products comprising of forgings and machined components for automotive and industrial sectors. "Others " primarily includes various new initiatives which the Group is carrying out other than forging related activities.

Consolidated statement of profit and loss				(` in Million)
			Quarter ended		Year ended
Sr.		June 30,	March 31,	June 30,	March 31,
Particulars	2021	2021	2020	2021
No.
	(Unaudited)	(Audited)	(Unaudited)	(Audited)
			( See note 4)

1 Segment revenue

Revenues from external customers

a	Forgings	20,684.87	19,933.91	11,140.25	61,116.83
b	Others	608.09	1,149.13	587.20	3,057.77
		21,292.96	21,083.04	11,727.45	64,174.60
	Less: Inter-segment revenue	4.31	3.06	-	4.37
	Total	21,288.65	21,079.98	11,727.45	64,170.23
	Adjustments and eliminations #	(211.88)	(251.49)	(185.34)	(807.62)
	Revenue from operations	21,076.77	20,828.49	11,542.11	63,362.61
2	Segment results
a	Forgings	3,263.87	3,197.75	(1,106.90)	4,307.27
b	Others	(77.48)	(40.99)	(112.46)	(217.01)
	Total segment profit/(loss) before interest, tax and exceptional	3,186.39	3,156.76	(1,219.36)	4,090.26
	items from each reportable segment
	Less: Finance cost	500.67	229.30	367.69	1,077.29
	Less: Unallocable (income)/expenditure (net )	35.27	226.78	(124.30)	205.23
	Total profit/(loss) before tax and exceptional items	2,650.45	2,700.68	(1,462.75)	2,807.74
	Add: Exceptional items (loss)
	Forgings	(616.47)	(8.03)	-	(3,062.28)
	Others	-	-	-	-
		(616.47)	(8.03)	-	(3,062.28)
	Profit/(loss) before tax	2,033.98	2,692.65	(1,462.75)	(254.54)
Consolidated Balance Sheet				(` in Million)
Sr.	Particulars		June 30,	June 30,	March 31,
No.		2021	2020	2021
			(Unaudited)	(Unaudited)	(Audited)
3	Segment assets
a	Forgings		100,826.01	83,230.73	94,605.93
b	Others		5,666.40	4,664.53	5,559.03
c	Unallocable assets including unutilised fund		33,048.25	26,397.16	32,008.07
	Total		139,540.66	114,292.42	132,173.03
	Adjustments and eliminations #		(454.31)	(400.34)	(394.65)
	Total assets		139,086.35	113,892.08	131,778.38
4	Segment liabilities
a	Forgings		23,473.46	14,201.95	20,637.38
b	Others		1,141.92	767.13	1,046.21
c	Unallocable		3,383.25	2,119.21	3,142.47
	Total		27,998.63	17,088.29	24,826.06
	Adjustments and eliminations #		(543.44)	(310.18)	(483.70)
	Total Liabilities		27,455.19	16,778.11	24,342.36
	Net capital employed		111,631.16	97,113.97	107,436.02

• Adjustment and eliminations include elimination on revenue, assets and liabilities of joint ventures and associates which have been accounted under equity method.

BHARAT FORGE LIMITED

Regd. Office : Mundhwa, Pune Cantonment, Pune 411 036,

Maharashtra, India.

CIN:L25209PN1961PLC012046

Ph. No. : 91-20-6704 2777 / 2476, Fax No. : 91-20-2682 2163

Email : [e-mail]; Website : www.bharatforge.com

STATEMENT OF STANDALONE AND CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

NOTES TO FINANCIAL RESULTS (Contd.):

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on August 12, 2021.
2. Pursuant to the Voluntary Retirement Scheme (VRS) declared by the Company for its employees at Chakan Plant in June 2021, expenses of `616.47 million are provided for the quarter ended June 30, 2021 in the standalone and consolidated financial results.
3. The figures pertaining to the quarter ended March 31, 2021 are the derived figures between the audited amounts for the year ended March 31, 2021 and unaudited amounts published for nine months period ended December 31, 2020.
4. "Other expenses" includes impact of exchange fluctuations on foreign currency transactions including revaluation of foreign currency assets and liabilities.

					(` in Million)
		Quarter ended			Year ended
Particulars	June 30,	March 31,	June 30,		March 31,
	2021	2021	2020		2021
	(unaudited)	(Audited)	(unaudited)		(Audited)
		(See note 4)
Standalone
Exchange gain/(loss)	4.11	253.01	(45.59)		(71.58)
Consolidated
Exchange gain/(loss)	(43.62)	489.97	(224.20)		(16.17)

1. The code on Social Security, 2020 ('Code') relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
2. The Company through its wholly owned subsidiary BF Industrial Solutions Limited (BFISL) acquired Sanghvi Forging & Engineering Limited (SFEL) along with its wholly owned subsidiary Sanghvi Europe B.V. on June 28, 2021 for a consideration of ` 770.60 million. SFEL is engaged in the manufacture of heavy forging for industrial applications. SFEL was admitted under Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 of India. The National Company Law Tribunal (NCLT) vide its order dated April 26, 2021, approved the resolution plan for acquiring controlling stake in SFEL, pursuant to which, the Company acquired SFEL through BFISL.
   The Company has calculated the fair value of the acquired assets and liabilities on a provisional basis in accordance with Ind AS 103 Business Combinations and allocated the purchase consideration of ` 770.60 million.
3. The spread of COVID-19 has severely impacted business in many countries including India and there have been severe disruption to regular business operations due to lockdown and other emergency measures. This may impact the Group's operations in certain geographies. The Group has made assessment of liquidity, recoverable values of its financial and non-financial assets, financial and non-financial liabilities, carrying value of its subsidiaries including possible obligations arising from any ongoing negotiations with customers, vendors and regulatory exposures across businesses and geographies and has concluded that there are no material adjustments required in the interim financial results. The management believes that it has assessed and taken all the possible impacts known from these events wherever possible outcome is known. However, given the effect of these on the overall economic activity and in particular in the industry in which Group operates, the impact assessment of COVID-19 is a continuous process, given the significant estimation and uncertainties associated with its nature, duration and outcome of any negotiations. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results. The Group will continue to closely monitor any material changes to future economic conditions and its consequential impact on its financial results.