Bharat Forge Shares Gain as Paramount Group Expands Armored Vehicle Production in India

15 Sep 2023 , 11:50 AM

Bharat Forge shares demonstrated strength on September 15 following the announcement by its defense partner, Paramount Group, based in the United Arab Emirates, regarding an expansion in the production of armored vehicles through its India-based facility. At 11.50 am on the NSE, Bharat Forge’s stock was trading at Rs 1,120.25, marking an increase of Rs 12.05, or 1.09%.

Paramount Group’s Chief, Steve Griessel, stated, ‘The global armored vehicle market is undergoing a monumental shift. We are excited to broaden our partnership to include the development and production of 4×4 and 6×6 Infantry Combat Vehicles for customers around the world.’

Paramount Group, in collaboration with Bharat Forge’s defense subsidiary, Kalyani Strategic Systems, currently manufactures armored vehicles in India. They have previously supplied KM4 armored vehicles to the Indian Army through Kalyani Strategic Systems’ production facility in India.

Kalyani Strategic Systems, through another partnership with the foreign-based defense entity Rafael Advanced Systems, recently secured an order worth Rs. 287.51 crore for supplying missile systems to the Indian armed forces.

In a separate regulatory filing, Bharat Forge also announced that its board had approved an additional investment proposal in its subsidiary, Kalyani Power Train. The company stated, ‘The company shall subscribe up to 5 crore equity shares with a face value of Rs 10 each of Kalyani Power Train. The funds proposed to be infused in the subsidiary will be further invested by it in the group’s wholly-owned step-subsidiary Kalyani Mobility.’

For the April-June quarter, Bharat Forge reported a 35.98% year-on-year increase in revenue from operations, reaching Rs 3,877 crore. The net profit for the quarter rose by 33.75% year-on-year to Rs 214 crore. However, the operating profit margins for the quarter remained flat at 15%.

Bharat Forge specializes in manufacturing forgings for the automotive, industrial, and energy sectors. Its subsidiary, Kalyani Strategic Systems, is engaged in the defense equipment and weapons business, while another subsidiary, Kalyani Power Train, operates in the electric vehicles and e-mobility sector.