Forging company Bharat Forge was back in the black in the quarter ended December, 2021 reporting a consolidated net profit of ₹422 crore helped by a strong growth in revenues and exceptional items.

The Pune-based company had clocked a consolidated net loss of ₹ 210.4 crore in the same quarter last year. There were exceptional gains of ₹ 167.18 crore during the December 2021 quarter while the same quarter last year had an exceptional loss of ₹299.45 crore.

Revenue grows 39%

Revenue from operations at the consolidated level grew 39 per cent to ₹2,394 crore during the December, 2021 quarter as compared to ₹ 1,723 crore clocked in the same quarter last year. Total expenses grew by 28 per cent to ₹ 2,093 crore from ₹ 1,633 crore.

Reversal of impairment and gain on fair valuation on loss of significant influence as an associate that is Tevva Motors, ₹ 149 crore was recorded as exceptional items during the reporting quarter.

Additionally, Kalyani Powertrain (KPL), a 100 per cent subsidiary of Bharat Forge, converted its investment in Zero Coupon Optionally Convertible Debentures of Tork Motors (TPML) into equity shares, amounting to ₹40 crore.

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Pursuant to this conversion, KPL’s stake in TMPL’s equity shares has increased to 60.66 per cent (on fully diluted basis). The gain on fair valuation of shares of TMPL of ₹27 crore has been recorded as a part of exceptional items in the consolidated financial results for the quarter and period ended December 31, 2021.

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