At Bharat Forge, we have consistently focused on maintaining the right capital structure underpinned by low debt and strong cash flows and to prudently deploy funds in areas of growth. This has enabled us to deliver steady returns and uphold business integrity through market cycles. In the present uncertain macro-economic scenario with high geopolitical tensions, our balance sheet and cash position provide confidence of long term.

The financial position of Bharat Forge continues to strengthen with every passing year. In the previous downcycle(s) that we witnessed in the past decade, we were faced with the challenge of driving business growth on one hand and protecting the balance sheet on the other.

However, since then, we deployed a robust financial management strategy which has translated in a strong capital position with a net debt : equity of 0.20 and cash position of ₹ 26,809 million as on March 31, 2022. This provided us with adequate headroom to commit important capex to the tune of ₹ 12,817 million in the present downcycle (FY 2020-FY 2022) towards setting up aluminum forging plant in the US, enhancing capacity in India, investing in the E-mobility business and making strategic acquisition to strengthen industrial business. These efforts have created a springboard which will result in multiple years of strong growth. In addition to this, we have also been able to repay debts amounting to ₹ 5,684 million during this period, thereby maintaining adequate liquidity and an excellent gearing ratio. Our Company continues to enjoy top-class credit rating at AA+.

Our balance sheet position has also enabled us to quickly capture growth opportunities as they came in FY 2022. This is evident in our robust performance of 71% growth in topline and ~245% growth in the profit after tax.

At Bharat Forge, we have always believed in creating value for shareholders, and have consistently delivered on it through dividend payments. In consideration of our strong performance in FY 2022, the Board of Directors of your Company has recommended a dividend of 275%.