Forging and precision engineering firm Bharat Forge Limited on Thursday (September 4) said its step-down subsidiary, Agneyastra Energetics Limited, has signed an agreement with Andhra Pradesh Industrial Infrastructure Corporation Ltd for the purchase of a land parcel measuring about 949.65 acres in Madakasira, Anantapur district.
The land will be used to develop an end-to-end defence energetics manufacturing complex. The facility will include a high explosives manufacturing plant, an ammunition filling plant, and a gun propellant facility. Provisions are also being made for future expansion into energetics for rockets, missile systems, space launch vehicles, and advanced energetics.
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Agneyastra Energetics was incorporated through Kalyani Strategic Systems Limited, a wholly-owned subsidiary of Bharat Forge. The company said the land acquisition aligns with its growth objectives and will enable further expansion of its presence in the defence sector.
First quarter results
On a standalone basis, Bharat Forge’s revenue declined 10% on-year to ₹2,105 crore, which was marginally lower than the ₹2,173 crore figure projected in the CNBC-TV18 poll. The drop in the company’s standalone revenue was due to a decline in exports.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter declined by 12.4% to ₹571 crore over last year, missing the poll’s estimate of ₹616 crore. EBITDA margin narrowed to 27.1% from 27.9% last year, again lower than the expected 28%.
Shares of Bharat Forge Ltd ended at ₹1,129.80, down by ₹5.80 or 0.51%, on the BSE today, September 4.
Also Read: Bharat Forge Q4 Results: Revenue falls 7% from last year, margin sees 20 bps expansion
