Bharat Forge Reports ₹89.89 Crore Q1 Loss, Approves ₹2,500 Crore Fund Raise Plan

New Delhi, Aug 10: Auto components major Bharat Forge Ltd on Monday reported a consolidated net loss of Rs 89.89 crore in the first quarter ended June 30, primarily on account of a restructuring provision at one of its German subsidiaries.

The company, which had posted a consolidated net profit of Rs 283.87 crore in the corresponding quarter last fiscal, said its board has approved raising up to Rs 2,500 crore subject to shareholders' approval.

Consolidated revenue from operations in the first quarter stood at Rs 4,639.94 crore, up from Rs 3,908.75 crore in the year-ago period, Bharat Forge Ltd said in a regulatory filing.

The group has recorded a restructuring provision of Rs 330.42 crore in the consolidated financial results for the quarter ended June 30 in relation to its German subsidiary Bharat Forge CDP GmbH (BF CDP), which is facing market challenges and associated cost disadvantages, the filing said.

Total expenses in the first quarter were at Rs 4,283.48 crore. It was at Rs 3,544.17 crore in the year-ago period, the company said.

The company's management said in an investor presentation that its Indian manufacturing business portfolio new sectors such as defence, aerospace, data centres and semiconductors are starting to contribute to the revenue mix.

Subsequently, the company is in the process of setting up dedicated forging and machining capabilities with an investment outlay of around Rs 1,800 crore over 12-18 months for various sunrise sectors including the energetics plant in Andhra Pradesh.

These investments are expected to generate incremental revenues in the coming years post commissioning, it added.

"The board has approved subject to Shareholder approval, fund raise of up to Rs 2,500 crore through issuance of equity shares, convertible securities or any other securities via qualified institutional placement, preferential allotment or any other method as approved under the shareholder approval in accordance with applicable law," the company said.

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For FY27, it said, "We continue to maintain our growth outlook of 20-25 per cent for the Indian manufacturing business which will be more pronounced in the second half of this fiscal."

Bharat Forge further said, "With the recent restructuring action on our EV business and the German Forging business, we continue to re-evaluate our current global manufacturing footprint for the other parts of the business where the medium-term focus of achieving profitability may continue to be challenging."

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