Bharat Forge’s Kalyani Rafael wins order worth Rs 287.51 crore

29 Aug 2023 , 11:54 AM

On August 28, Bharat Forge shares reached an all-time high of Rs 1,056.80 after Kalyani Rafael Advanced Systems announced an order win of Rs 287.51 crore. Kalyani Rafael Advanced Systems is a joint venture between Kalyani Strategic Systems, a subsidiary of the former, and Rafael Advanced Systems, a subsidiary of Israel. The aforementioned order is for the sale of missile systems to the Ministry of Defence.

The Kalyani Rafael order came after the Defence Acquisition Council approved proposals worth Rs 7,800 crore last week. According to the defence ministry, this was done to boost the operational capabilities of the Indian armed forces.

The company reported a 35.98% year-on-year (YoY) rise in revenue from operations at Rs 3,877 crore in its Q1FY24 results. The net profit for the quarter increased by 33.75% year-on-year to Rs 214 crore. Operating profit margins remained constant at 15% for the period.

Bharat Forge Limited specializes in forgings for the automotive, industrial, and energy industries. Kalyani Strategic Systems, a subsidiary, and its joint venture with Rafael Systems specialize in the production of sophisticated munitions and other defense equipment.

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