Bharat Forge rose 2.82% to Rs 428.25 at 9:36 IST on BSE after the company said its German subsidiary won a multi-year contract worth Euro 250 million from a German OEM for supply of suspension components.
The company made the announcement after market hours on Thursday, 8 May 2014.
Meanwhile, the BSE Sensex was up 35.53 points, or 0.16%, to 22,379.57.
On BSE, so far 20,000 shares were traded in the counter, compared with an average volume of 67,803 shares in the past one quarter.
The stock hit a high of Rs 428 and a low of Rs 423.10 so far during the day. The stock hit a 52-week high of Rs 449 on 10 April 2014. The stock hit a 52-week low of Rs 185.55 on 6 August 2013.
The stock had underperformed the market over the past one month till 8 May 2014, falling 4.48% compared with no change in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 22.03% as against Sensex's 9.66% rise.
The mid-cap auto component company has an equity capital of Rs 46.56 crore. Face value per share is Rs 2.
Bharat Forge said that the suspension components are based on technology industrialized by its German subsidiary, Bharat Forge Aluminumtechnik GmbH & Co KG (BFAT), over the past few years. The industrialisation of this technology has put BFAT at the forefront of aluminium component industry witnessing huge demand globally, said the company.
To create capacity for this additional business, BFAT is increasing its capacity by adding a new press line with all auxiliary equipment including melting which will be commissioned in January 2015, the company said.
This plant is being set up in the state of Saxony at Brand-Erbisdorf at cost of Euro 31 million funded by way of internal accruals, debt & state subsidies, the company added.
Commenting on the order win, Mr. Baba N Kalyani, Chairman and Managing Director of Bharat Forge, said, "This is a proud moment for our German aluminum forging business and for the Bharat Forge Group' This win has been made possible because of continuous focus on innovation, technology adaptation and execution track record of BFAT and will enhance our presence in the fast growing aluminum components business which is finding increasing use in passenger vehicles for weight reduction and high performance."
Bharat Forge's net profit jumped 97.7% to Rs 93.97 crore on 22.4% growth in net sales to Rs 808.62 crore in Q3 December 2013 over Q3 December 2012.
Bharat Forge is a global provider of high performance, innovative, safety & critical components and solutions to various industrial sectors including Automotive, Oil & Gas, Aerospace and Rail & Marine. BFL today has the largest repository of metallurgical knowledge in the region and offers complete end to end capability from concept to testing and validation to marquee global OEM's.
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