Bharat Forge slips after subsidiaries fined 32 mln euros by German competition regulator

Bharat Forge fell 1.88% to Rs 528.70 after German competition regulator imposed a fine of 32 million euros on three local subsidiaries of the company as part of a settlement in two separate investigations.

In a BSE filing made after market hours yesterday, the company said that its German subsidiary companies viz. Bharat Forge Aluminiumtechnik GmbH, Bharat Forge CDP GmbH, and Bharat Forge Global Holding GmbH reached a settlement with Germany's national competition regulator - Bundeskartellamt (Federal Cartel Office) (FCO) in connection with two separate proceedings.

The investigation in the above two matters pertained to the period between 2004 and 2018 and was initiated by FCO against several companies in Germany.

The company's German subsidiaries were among many such companies. They had been under confidentiality obligations under applicable German laws with respect to these proceedings.

Bharat Forge's German Subsidiaries have reached settlement in an aggregate amount of euro 32 million to be paid over the next 5 years. The terms of the settlement are confidential under the applicable laws.

"The final settlement for Bharat Forge Aluminiumtechnik GmbH was signed earlier today; the settlement for Bharat Forge CDP GmbH and Bharat Forge Global Holding GmbH is in the final stage and expected to be signed early next year, the auto maker said in a statement.

Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries. It earns notable revenues from Class 8 trucks in the US market.

The company reported a consolidated net loss of Rs 1.32 crore in Q2 FY21 compared with net profit of Rs 205.48 crore in Q2 FY20. Net sales during the quarter declined by 36.2% year-on-year (YoY) to Rs 1376.09 crore.

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