Bharat Forge climbs 4% as firm to acquire JS Autocast Foundry India

NEW DELHI – Shares of Bharat Forge gained 4 per cent in early trade on Friday after the auto components major announced that it will acquire JS Autocast Foundry India for an undisclosed sum to expand its portfolio in the industrial sector and its manufacturing footprint in southern India.

Bharat Forge’s counter jumped to a high of Rs 694.20 as against Rs 667.60 at the previous close on the National Stock Exchange.

The acquisition will be made through its subsidiary BF Industrial Solutions Limited, reports said.

JS Auto is a leading supplier of iron castings for wind, hydraulic, off-highway and automotive applications, as per a company statement.

Over the past five years, the sales of JS Auto have grown at a compounded rate of 17.7 per cent to Rs 259 crore in FY21, reports said.

“JS Auto will accelerate our diversification journey and enable in addressing the decarbonisation opportunity,” Amit Kalyani, deputy managing director at Bharat Forge was quoted as saying. This acquisition will significantly broaden Bharat Forge’s presence, capabilities and product offerings in the industrial space, he said.

The acquisition will be through an undisclosed upfront payment and a fixed deferred payment at the end of three years.

Bharat Forge reported a consolidated net profit of Rs 422 crore in the third quarter ended December 31, 2021.

The company had posted a consolidated net loss of Rs 210.45 crore in the same quarter last fiscal.

Consolidated revenue from operations for the period under review stood at Rs 2,394.69 crore as compared to Rs 1,723.11 crore in the year-ago quarter.