Bharat Forge board approves Rs 2,000 crore fundraising; reports mixed Q1 results

The company's EBITDA fell by 18.7% to Rs 651.3 crore from Rs 548.5 crore a year ago.

Bharat Forge's board has approved a plan to raise up to Rs 2,000 crore through issuing shares and debt. The decision comes as the company reported a mixed performance for the first quarter.

For Q1, Bharat Forge saw a 13.5% decline in net profit, amounting to Rs 269.4 crore compared to Rs 312 crore in the same period last year. Despite this drop, the company's revenue increased by 10%, reaching Rs 2,338 crore, up from Rs 2,127.2 crore year-on-year.

The company's EBITDA fell by 18.7% to Rs 651.3 crore from Rs 548.5 crore a year ago. However, its margin improved to 28% from 26% over the same period. The firm also faced a one-time loss of Rs 146 crore during the quarter.

Following the announcement of its Rs 2,000 crore fundraising plan, Bharat Forge’s shares surged 4 percent on the NSE, trading at Rs 1,619.65 each.

Baba Kalyani, Managing Director of Bharat Forge, expresses optimism for Q2, stating, "We anticipate continued positive momentum and reaffirm that all our business segments will see improvements in operational parameters."