Bharat Forge moved from strength to strength, hitting its 52-week high of Rs 285.75 on Tuesday following the solid performance for 2002-03.

But the scrip eased slightly from its 52-week high to Rs 285 (still higher than its yesterday's close by 2.76%) by 10:45 IST.

Towards close on Monday, Bharat Forge said that its Q4 ended 31 March 2003 net profit stood at Rs 30.01 crore on total income of Rs 198.67 crore (Rs 1.98 billion). For the year ended 31 March 2003, the company's net profit was Rs 81.09 crore on total income of Rs 643.86 crore (Rs 6.43 billion). The company's board recommended a dividend of 60% (Rs 6 per share on a face value of Rs 10 per share) for FY 2002-03.

Analysts seem to be pleased with the results and are also optimistic about the company's future. However, margins are expected to remain under pressure following price competition in the domestic market, which accounts for 60% of the company's revenues. Analysts expect the company to record a rise of 34% in net profit to Rs 108 crore (Rs 1.08 billion) for the financial year ending 31 March 2004.

The company finds itself backed up by a healthy order book position as well as an increasing focus on the export market. It is also planning to tap the international car segment for the first time, which will help its volumes increase manifold.

BFL is the flagship company of the Kalyani Group. It is the largest forgings company in Asia and one of the three largest and most technologically advanced commercial forge shops in the world. The company manufactures a wide range of forgings and machined components for the automotive, diesel engine, railway, earthmoving, cement, sugar, steel, coal, shipbuilding and oilfield industries as also general engineering equipment.

Its product range includes finished machined crankshafts, sub-assembly of industrial machinery, axle beams, steering knuckles, connecting rods, automotive engine and suspension components, etc. It is the number one axle component manufacturer in the world (25% world market share) and the number two engine component manufacturer in the world. Engine and axle components together account for 80% of the company's total sales.

The company's domestic clients include large OEM players like Ashok Leyland, Telco, Mahindra, Eicher, Escorts, Maruti Udyog, Bajaj Auto, Cummins, BEML, etc. Its export clients include Meritor Automotive, First Auro Works, Dana Corporation, Mercedes Benz, New Holland Ford, Mitsubishi Motor Corporation, Volvo Trucks, Lister-Petter, Dirona, Renault, Toyota, Daimler Chrysler, Spicer, Sang Motors, Caterpillar-Perkins, Isuzu and Macimex.

Over the years, BFL has created world class capacities and capabilities. It is the second company in the world to have two 16,000 MT forging lines with an installed capacity of 102,900 MT per annum. It possesses the largest single location commercial forging facility in the world.

As on 31 March 2003, the promoters' holding in the company was 37.26%, while the public and institutions held 22.63% and 24.80%, respectively.

BSE code: 500493