Bharat Forge posts Rs.36.56 crore loss in Q3
23 Jan 2009
Auto components maker Bharat Forge has posted Rs36.56 crore consolidated net loss in third quarter for the current fiscal as compared to Rs70.96 crore during the corresponding period last year.
Total income recorded was Rs974.23 crore for quarter ended December 2008; the same stood at Rs1,099.16 crore for last year.
The standalone basis net profit declined 92.52 per cent at Rs4.35 crore in quarter ended December 2008 as compared to Rs58.18 crore over the same period last year.
In a regulatory filing with the BSE, the company said its profit declined due to huge forex losses on account of volatile market conditions.The quarter also saw the turnover plunge to Rs459.36 crore as compared to Rs583.85 crore for the same quarter last year.
The company has decided to apply the principles suggested by the technical directorate of the Institute of Chartered Accountants of India to reflect the impact of fluctutations in foreign currency rates arising out of instruments acquired to hedge highly probable transactions. These will be applied as laid out in Accounting Standard -30 - Financial Instruments - Recognition and Measurement.
The company has also declared that it has not entered into any exotic derivative instruments.
The company said that the non auto facilities (HFD - II and CAM, Baramati) have started production as scheduled. The heavy forge division is in the process of ramping up production while the Baramati facility has commenced trial production. It will start development work for customers in the current quarter while regular production is expected to start as per schedule.