Bharat Forge Q3 net profit slips 26% Y-o-Y

Co's board of directors also approved the divestment of its entire share of investment in ALSTOM Bharat Forge Power Private Ltd

Bharat Forge reported net profit of Rs 126.89 crore for the third quarter ended September 30, 2016, down 26 per cent when compared to Rs 172.27 crore in profit for the third quarter of FY16.

The company's revenue declined 20 per cent at Rs 935.9 crore for the quarter, from Rs 1,170.97 crore registered in the same quarter last year. On sequential basis, topline slipped 2.2 per cent. Revenues were down as its exports market suffered. Revenue from outside of India was down 30 per cent to Rs 451.52 crore.

The company also announced that the board of directors of Bharat Forge have approved the divestment of its entire share of investment in ALSTOM Bharat Forge Power Private Limited (ABFPPL) for a consideration of $35 million (approximately Rs 233 crore), the investment value is Rs 173 crore. This transaction is subject to regulatory and other approvals. Accordingly, the investment has been continued to be classified as non-current investment till the completion of the condition precedent to the transaction.