Bharat Forge , a leading Indian multinational corporation in the auto component manufacturing sector, reported a decline in revenue for the second quarter, while also announcing plans for significant fundraising.

Q2 Financial Highlights

Revenue Decline and Margin Improvement

Bharat Forge experienced a year-over-year revenue decline of 13.3% in Q2, with total revenue falling to Rs 19.5 billion from Rs 22.5 billion in the same quarter last year. This figure fell short of market estimates, which had projected revenue of Rs 22.46 billion.

Despite the revenue dip, the company managed to improve its EBITDA margin, which rose to 28.30% from 27.84% in the previous year. This margin improvement exceeded market expectations of 25%, indicating the company's ability to maintain operational efficiency in challenging market conditions.

Profitability

The company's EBITDA for Q2 stood at Rs 5.5 billion, down from Rs 6.25 billion in the previous year but surpassing analyst estimates of Rs 5.23 billion. Net profit for the quarter was Rs 3.1 billion, showing a decrease from Rs 3.6 billion year-over-year but slightly outperforming market expectations of Rs 3.04 billion.

Fundraising Approval

In a significant development, Bharat Forge's board has approved raising funds up to Rs 20 billion. This decision, disclosed in the company's regulatory filing, suggests that Bharat Forge may be preparing for potential expansion or strategic investments. The specific use of these funds was not detailed in the announcement.

Looking Ahead

The approval for substantial fundraising of up to Rs 20 billion indicates that Bharat Forge may be positioning itself for future growth opportunities or preparing to navigate ongoing market challenges. Investors and analysts will likely be keen to understand the company's plans for utilizing these funds and its strategy for addressing the revenue decline in upcoming quarters.

As Bharat Forge navigates through a period of revenue challenges, its ability to maintain profitability and secure approval for significant fundraising demonstrates the company's resilience in the competitive auto component sector.

Bharat Forge Limited , a leading Indian multinational company, has announced plans to explore various fundraising options, including loans and debentures. This development comes as part of the company's strategic financial planning.

Fundraising Considerations

According to a recent corporate filing, Bharat Forge's Board of Directors is set to consider approval for raising funds through multiple avenues. The company has outlined the following potential fundraising instruments:

• Term loans
• Non-convertible debentures
• Other debt instruments deemed appropriate

Upcoming Board Meeting

The decision to explore these fundraising options will be discussed at the company's upcoming board meeting. Key details of the meeting are as follows:

Financial Results and Investor Communication

In conjunction with the fundraising considerations, Bharat Forge has also scheduled an Analyst/Investor Conference Call to discuss its financial performance. The details of this call are:

The conference call will feature senior management participation, including:

• Mr. Amit Kalyani, Vice Chairman & Joint Managing Director
• Mr. Subodh Tandale, Executive Director
• Mr. Kedar Dixit, Sr. VP & CFO
• Mr. Virendra Kale, VP - Finance

This move to explore various fundraising options suggests that Bharat Forge may be planning for expansion, debt refinancing, or strengthening its financial position. However, the specific use of funds and the amount to be raised have not been disclosed at this time.

Investors and market analysts will likely gain more clarity on the company's fundraising plans and financial performance during the upcoming board meeting and subsequent investor conference call.