The discussions follow the Ministry’s March 2023 decision to approve the procurement of 155mm/52cal ATAGS and Gun Towing Vehicles (GTVs) for the Indian Army under the Acceptance of Necessity (AoN) framework.
The ongoing negotiations come after the completion of a comprehensive technical evaluation and the opening of commercial bids. Bharat Forge anticipates concluding the discussions and finalising the contract before the end of the current financial year 2024-25.
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The company has committed to notifying the stock exchange after finalising the negotiation process. “We shall inform the stock exchange as soon as the contract negotiation procedure is concluded which is expected before the end of the current financial year 2024-25,” Bharat Forge added.
Bharat Forge’s revenue for the quarter remained nearly unchanged at ₹2,246 crore from ₹2,249 crore during the same period last year. Net profit stood at ₹361.1 crore, a growth of 4.4% from the same quarter last year’s figure of ₹346 crore.
Bharat Forge’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 3% yearly to ₹625.4 crore. EBITDA margin, though, saw an increase of 70 basis points on a year-on-year basis to 27.8% from 27.1% a year earlier.
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While revenue, profit and EBITDA were marginally below expectations for Bharat Forge, its EBITDA margin was in line with the estimates. The company expects the performance in the second half of the current financial year to be stable when compared to the first half, with a focus on revenue growth and profitability improvement in its subsidiaries.
Shares of Bharat Forge Ltd ended at ₹1,322.75, up by ₹19.35, or 1.48% on the BSE.
