Auto components major Bharat Forge on Friday reported a consolidated net loss of ₹210.45 crore in the third quarter ended December 31, 2020.
The company had posted a consolidated net profit of ₹40.44 crore in the same quarter last fiscal.
Consolidated revenue from operations stood at ₹1,723.11 crore as compared to ₹1,830.86 crore in the year-ago period, it added.
During the quarter, the company said it incurred ₹5.5 crore expenses for the quarter in standalone results on account of voluntary retirement scheme (VRS) for its employees at Mundhwa and Satara Plant.
On a consolidated basis, during the quarter, it had expenses of ₹19.71 crore for the quarter on manpower optimisation in overseas subsidiaries.
Settlement towards German arms
Moreover, during the third quarter, Germany's National Competition regulator (Federal Cartel Office)(FCO) concluded the settlement with the company's German subsidiaries.
Accordingly, an amount of ₹274.27 crore has been provided for in the quarter and nine months period ended December 31, 2020 in consolidated results towards such settlement, including related expenses. The settlement amount will be paid over next five years, the company said.
Commenting on the company's performance, Bharat Forge Chairman & Managing Director BN Kalyani said the strong recovery in end-market demand across the sector continued into this quarter, enabling the company to register healthy double digit growth in key parameters.
Outlook
On the outlook, he said, ``Looking ahead into the coming quarter, demand is expected to remain robust across all key geographies and sectors. In the export market, we are witnessing demand recovery across sectors." The government's recent announcement on production linked incentive (PLI) coupled with the mission of Atmanirbharat are significant steps in enhancing the scale and competitiveness of manufacturing in India, he added.
"We expect these initiatives to open up new growth opportunities for the company," Kalyani said adding the focus on infrastructure development along with the vehicle scrapping policy in the Union Budget bodes well for both the commercial vehicles and Industrial sector growth over the medium term.”