Bharat Forge stock gained momentum as the company announced that it has approved the conversion of existing intercorporate deposits given by the company to its wholly owned subsidiary, Kalyani Powertrain Limited (KPTL)
Shares of Bharat Forge surged over 7 per cent in Wednesday’s trade following its June quarter results. The company reported a consolidated net profit of Rs 160.37 crore in the same quarter last financial year. Bharat Forge said in a regulatory filing.
The stock gained momentum as the company announced that it has approved the conversion of existing intercorporate deposits given by the company to its wholly owned subsidiary, Kalyani Powertrain Limited (KPTL).
On Wednesday, Bharat Forge shares settled 62.15 points or 6.87 per cent higher at Rs 967.10 on the BSE.
This conversion includes the accrued interest, totaling Rs 111.30 crore, into equity shares. The conversion is aimed at decreasing the collective borrowing burden of Kalyani Powertrain. The subsidiary serves as a hub for all of the company's electronic vehicle initiatives.
In addition, the board of Bharat Forge approved an investment of an amount not exceeding Rs 1,500 million in KPTL from time to time, in one or more tranches.
The company posted consolidated revenue from operations of Rs 3,877.27 crore as against Rs 2,851.46 crore in the year-ago period.
Bharat Forge's earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 26 per cent to Rs 549 crore as against Rs 435 crore in the same quarter last year. Its EBITDA margin improved 110 basis points to 25.8 per cent.
In European business, the company’s operating profit stood at Rs 51 crore against a loss of Rs 14 crore in the previous quarter. Its US business reported an operating loss of Rs 35 crore.