Bharat Forge Ltd — Interim / Quarterly Report 2021

Feb 12, 2021

BHARAT FORGE

February 12, 2021

To,

BSE Limited,

1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai - 400 001 BSE SCRIP CODE - 500493

Dear Sirs,

National Stock Exchange of India Ltd.

'Exchange Plaza', Bandra-Kurla Complex, Bandra (East) Mumbai- 400 051 Symbol: BHARATFORG Series: EQ

Re: Earning Update for Q3 of FY 2020-21

Please find enclosed herewith Earning Update issued by the Company for 03 of FY 2020-21.

Thanking you,

Yours faithfully,

For Bharat Forge Limited

r /

Tej�haudhari Company Secretary

Encl.: As above

Inspiring Innovation. Worldwide.

ANALYST UPDATE Q3 FY21

MANAGEMENT COMMENTS

BFL 3 MONTH REPORT

FINANCIAL HIGHLIGHTS

INDIA BUSINESS

INTERNATIONAL BUSINESS

BALANCE SHEET

CONSOLIDATED HIGHLIGHTS

ANNEXURE

"The strong recovery in end market demand across sector continued into this quarter enabling the company to register healthy double digit growth in key parameters. On a sequential basis, Revenues, EBITDA & PBT grew by 17. 5%, 39. 9% & 42. 2% respectively.

The union budgets focus on infrastructure development along with the vehicle scrapping policy bodes well for both the Commercial Vehicles & Industrial sector growth over the medium term.

The government's recent announcement on Production Linked Incentive (PLI) coupled with the mission of AtmaNirbharta are major steps in enhancing the scale & competitiveness of manufacturing in India. We expect these initiatives to open up new growth opportunities for the company.

Looking ahead to into the coming quarter, demand is expected to remain robust across all key geographies & sectors. In the export market, we are witnessing demand recovery across sectors".

B.N. Kalyani Chairman & Managing Director

Automotive Business

• Q3 FY21 witnessed continuation of recovery in the domestic automotive industry driven by robust economic growth, pent up demand and low interest rates.

BHARAT FORGE

KALYANI

• With almost all economic activities back on track, signs of recovery are visible in the heavy truck industry.
• Increased infrastructure spending, mobilization of construction projects and mining activities are expected to improve fleet utilization and M&HCV demand further in the coming quarters.

Industrials Business

• Industrial business showed sequential as well as YoY growth in Q3 FY21 as the economy re-opened and started recovering.
• Focus on infrastructure spending by the Government would provide impetus in the near to medium term.

Automotive Business

From mid CY 2020, usage and demand for heavy trucks in both North America and Europe recovered swiftly than expected.

BHARAT FORGE

KALYANI

• Heavy truck market ended the most challenging year on a high note with order volume for Q4 CY20 one of the strongest ever.
• Freight volume growth, increased freight rates and shortage in transport capacity are stimulating expansion demand
• As economy continues to recover, fleet operators are showing increasing confidence about business conditions in 2021.

Industrial business

Industrial business severely impacted by the tepid market demand from the Oil Et Gas sector and lower end user demand for construction and mining equipment.

NACEMENT

MANAULMENTCOMMENTS	Values in Rs. Million
FINANCIAL HIGHLIGHTSINDIA BUSINESS	PARTICULARS (Standalone)	December 31, 2020	Märch 31, 2020
INTERNATIONALBUSINESS	Long Term Debt	23,137	18,351
BALANCE SHEET	Working capital & Bill Discounting	14,452	14,084
CONSOLIDATEDHIGHLIGHTSANNEXURE	Equity	56,709	53,551
	Cash	26,374	18,821
	D/E	0.66	0.61
	$D/E$ (Net)	0.20	0.25

ANALYST UPDATE Q3 FY21 BHARAT FORGE

MANAGEMENT COMMENTS

FINANCIAL HIGHLIGHTS

INDIA BUSINESS

INTERNATIONAL BUSINESS

BALANCE SHEET

CONSOLIDATED HIGHLIGHTS

• Total revenues in Q3 FY21 at Rs. 17,232 million registered a de-growth of 6.0% as compared to Q3 FY20.

• EBITDA at Rs 3,114 million increased by 31. 9% as compared to Q3 FY20. EBITDA margins have expanded by 520 bps driven by improvement in performance of Overseas Operations.

• PBT before Exchange gain/ (loss) stood at Rs 1,551 million in Q3 FY21.

Values in Rs. Million

FINANCIAL HIGHLIGHTS STANDALONE FINANCIALS Shipment Tonnage Domestic sales Export Sales Other Operating Income Total Revenue EBITDA EB/TOA% Other Income PBT PBT % Exchange Gain/ (Loss) PBT after Exchange Gain/ (loss) Exceptional Item Profit After Tax Q3 FY21 Q2 FY21 50,943 40,775 5,158 4,036 5,117 4,623 82 156 10,357 8,815 2,322 1,660 22.4% 18.8% 353 313 1,443 1,015 13.9% 11.5% (175) (94) 1,268 921 (55) (29) 926 703 QoQ% 24.9 27.8 10.7 17.5 39.9 42.2 37.7 31.7 Q3 FY20 46,998 4,079 6,353 335 10,767 2,394 22.2% 398 1,613 15.0% (38) 1,575 1,278 Values in Rs. Million YoY% 8.4 26.5 (19.5) (3.8) (3 .0) (10.5) (19.5) (27.5)

INDIA BUSINESS INTERNATIONAL BALANCE SHEET CONSOLIDATED

HIGHLIGHTS

BUSINESS

MANAGEMENT COMMENTS

KALYANI

FORGE

. . . . .

MANAGEMENTCOMMENTS						Values in Rs. Million
FINANCIAL HIGHLIGHTS	CONSOLIDATED FINANCIALS	Q3 FY21	Q2 FY21	QoQ %	Q3 FY20	YoY %
INDIA BUSINESS	Total Revenue	17,232	13,761	25.2	18,328	(6.0)
INTERNATIONALBUSINESS	EBITDA	3,114	1,655	88.2	2,361	31.9
	EBITDA %	18.1%	12.0%		12.9%
BALANCE SHEET	PBT	1,551	325		980	58.3
CONSOLIDATEDHIGHLIGHTS	Exchange Gain/(Loss)	(280)	7		(118)
ANNEXURE	Exceptional Item	(2,994)	(60)		(276)
	PBT after Exchange Gain/ (loss)	(1, 723)	272		586
	Profit After Tax	(2,068)	(15)		490
	Associate/ JV (Profit /Loss) share	(37)	$\overline{2}$		(86)
	Minority Interest	12	14		14
	Profit After Tax	(2,093)	1		418

MANAGEMENT	Values in Rs. Million
COMMENTS	OVERSEAS OPERATIONS	Jul - Sep 2020	Apr - Jun 2020	Jul - Sep 2019
FINANCIAL HIGHLIGHTS
	Total Revenue	6,191	3,493	6,324
INDIA BUSINESS	EBITDA	562	(334)	258
INTERNATIONALBUSINESS	EBITDA %	9.1%		4.1%
	PBT before Exchange Gain/(Loss)	(82)	(952)	(236)
BALANCE SHEET	INDIAN SUBSIDIARIES	Q3 FY21	Q2 FY21	Q3 FY20
CONSOLIDATEDHIGHLIGHTS	Total Revenue	203	178	89
	EBITDA	(16)	(15)	(25)
ANNEXURE	PBT before Exchange Gain/(Loss)	(38)	(33)	(31)
	BFL + BFIL (TRADING SUBSIDIARY)	Q3 FY21	Q2 FY21	Q3 FY20
	Total Revenue	10,838	10,090	11,915
	EBITDA	2,568	2,004	2,128
	EBITDA %	23.7%	19.9%	17.9%
	PBT before Exchange Gain/(Loss)	1,671	1,310	1,247

DISCLAMER

This presentation contains certain forward looking statements concerning Bharat Forge's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, interest rates and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. No part of this presentation shall be reproduced, copied, forwarded to any third party either in print of in electronic form without prior express consent of the company.

Thank You