Bharat Forge Limited
Incorporated in 1961, Bharat Forge Limited is the flagship company of the Pune-based Kalyani Group, which has interests in forging, auto components, speciality steels, infrastructure, renewable energy and speciality chemicals businesses. BFL is one o...
Key Metrics
EPS
20.42
Current ratio
1.08
Debt/Equity
1.27
Debt/EBITDA
3.28
Interest coverage ratio
3.93
Operating Cashflow to total debt
0.18
Financials
Pros & Cons
Exclusive on TAP Bonds
Here's what we like about this company and potential risks we have identified.
Pros
Leadership position in CV engine and chassis components segment; strategic acquisitions to facilitate strong global customer base
Diversified product profile and dual shore capabilities; strong engineering, design and fully integrated manufacturing capabilities aid healthy wallet share with leading OEMs and acquisition of new businesses
Diversified investments in industrial components business and favourable demand prospects in Defence, aerospace and locomotive sectors support long-term growth
Strong liquidity profile, aided by sizeable cash and liquid investments
Cons
Challenging operating environment across geographies, particularly in aluminium forging business in Europe and USA
Despite diversification plans, exposure to the cyclical CV segment both in India and international markets remains sizeable
High working capital intensity and moderately leveraged capital structure
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About Bharat Forge Limited bond.
This comprehensive profile covers key factual information about Bharat Forge Limited. Incorporated in 1961, Bharat Forge Limited is the flagship company of the Pune-based Kalyani Group, which has interests in forging, auto components, speciality steels, infrastructure, renewable energy and speciality chemicals businesses. BFL is one of the largest forging companies in India and among the largest players in the world, second only to Thyssen Krupp in terms of installed capacity and revenues. BFL has a diversified global customer base, including the top five CV and PV manufacturers in the world and caters to key global automotive OEMs and Tier I suppliers. The company’s business broadly comprises two segments, auto components (~55-60% of standalone revenues) and nonautomotive components (~40-45% of standalone revenues). BFL’s auto components segment primarily manufactures forgingbased engine and chassis components with a focus on crankshafts and front-axle beams. It is one the leading suppliers of crankshafts and front-axle beams to CV OEMs in India, Europe and North America, and enjoys a sizeable share of the business with the leading OEMs. In terms of its geographical mix, BFL caters to North American, European as well as Indian markets. Over the years, it has followed a two-pronged diversification strategy. During the first phase, the company diversified its presence across markets through a series of overseas acquisitions and transformed its business model from being a forging- based auto component company with domestic market presence to an entity with global scale and customer base. As part of the next phase, it has been diversifying its presence into non-automotive segments, such as defence and aerospace. EPS in Mar-2024 was 20.42. Current ratio in Mar-2024 was 1.08. Debt/Equity in Mar-2024 was 1.27. Debt/EBITDA in Mar-2024 was 3.28. Interest coverage ratio in Mar-2024 was 3.93. Operating Cashflow to total debt in Mar-2024 was 0.18. Total revenue for March-2024 was ₹15,914.81. Net income for March-2024 stood at ₹951.13. Total assets as of Mar-2024 were ₹19,183.94. Operating cash flow for Mar-2024 was ₹1,664.40. The company’s borrowing relationships include IndusInd Bank Limited (₹N/A Cr), State Bank of India (₹N/A Cr), Bank of India (₹N/A Cr), Bank of Baroda (₹N/A Cr), Bank of Maharashtra (₹N/A Cr), Canara Bank (₹N/A Cr), State Bank of India (₹N/A Cr), HDFC Bank Limited (₹N/A Cr), ICICI Bank Limited (₹N/A Cr), Axis Bank Limited (₹N/A Cr), Citibank N.A. (₹N/A Cr), Standard Chartered Bank (₹N/A Cr), Credit Agricole Corporate & Investment Bank (₹N/A Cr), HSBC Limited (₹N/A Cr), Deutsche Bank (₹N/A Cr), Kotak Mahindra Bank Limited (₹N/A Cr), J.P. Morgan Chase Bank N.A. (₹N/A Cr), MUFG Bank Limited (₹N/A Cr), Bank of India (₹N/A Cr), Bank of Baroda (₹N/A Cr), Bank of Maharashtra (₹N/A Cr), Canara Bank (₹N/A Cr), State Bank of India (₹N/A Cr), HDFC Bank Limited (₹N/A Cr), ICICI Bank Limited (₹N/A Cr), Axis Bank Limited (₹N/A Cr), Citibank N.A. (₹N/A Cr), Credit Agricole Corporate & Investment Bank (₹N/A Cr), HSBC Limited (₹N/A Cr), IDFC FIRST Bank Limited (₹N/A Cr), (₹N/A Cr). Peers and comparison entities consist of Bharat Forge Limited, JSW Steel limited, Tata Steel limited, Jindal Steel And Power limited. As of Dec 2024, promoters hold N/A% while others hold N/A% of equity. Key strengths include: Leadership position in CV engine and chassis components segment; strategic acquisitions to facilitate strong global customer base; Diversified product profile and dual shore capabilities; strong engineering, design and fully integrated manufacturing capabilities aid healthy wallet share with leading OEMs and acquisition of new businesses; Diversified investments in industrial components business and favourable demand prospects in Defence, aerospace and locomotive sectors support long-term growth; Strong liquidity profile, aided by sizeable cash and liquid investments . Key risks include: Challenging operating environment across geographies, particularly in aluminium forging business in Europe and USA; Despite diversification plans, exposure to the cyclical CV segment both in India and international markets remains sizeable; High working capital intensity and moderately leveraged capital structure. Leadership team details include Amit B Kalyani (Joint Managing Director), Ashish Bharat Ram (Non Executive Non Independent Director), B N Kalyani (Chairman & Managing Director), B P Kalyani (Executive Director), Dipak B Mane (Independent Director), G K Agarwal (Deputy Managing Director), Guru Biswal (Chief Executive Officer), K B S Anand (Independent Director), Kishore Saletore (Chief Financial Officer), Lalita D Gupte (Independent Director), Murali G Sivaraman (Independent Director), Neelesh Tungar (President), P H Ravikumar (Independent Director), Pratap G Pawar (Independent Director), S E Tandale (Executive Director), Sonia Singh (Independent Director), Tejaswini Chaudhari (Company Secretary & Compliance Officer), Vimal R Bhandari (Independent Director), Yogesh Zope (Chief Information Officer). This detailed corporate overview is structured to provide a thorough understanding of all available data points, enhance search visibility, and support investor analysis.