Kalyani Group Business Report FY ended Mar. 2019
Bharat Forge Ltd.
Financial Overview (FY ended Mar. 31, 2019)
-In the fiscal year ended March 31, 2019, the Company's consolidated sales increased by 21.4% at INR 101,457 million compared to INR 83,577 million in the previous fiscal year. The Company's sales were increased by increasing contribution from demand growth in the global truck and industrial sector, and ramp-up of the passenger vehicle program.
-The Company’s EBITDA of INR 20,284 million in the fiscal year ended March 31, 2018 up by 14.0% to the EBITDA of INR 17,787 million in the previous fiscal year. EBITDA percentage increased from to 20.0% compared to 21.3% in year previous.
-Due to fairly volatile and uncertain demand environment across sectors and geographies, The Company’s focus in the coming 12-18 months shall include reducing cost, accelerating new product development, maximizing free cash generation and exploring organic/inorganic growth avenues.
-The company is planning de-risking strategy and reduced dependence on Auto sector while diversified Industrials business across geographies.
-The company is planning foray into newer sectors such as Light weighting technology (LWT) and e-mobility. Aluminum forgings will be another focus area for Lightweighting.
-In the fiscal year ended March 31, 2018, the Company's R&D activities focused on the development of additive manufacturing, technology development for precision forging, development of forging parts for hybrid vehicle, development of parts for electric vehicles through economical manufacturing process, development of near net shape components for differential gear box, aluminum forgings for MPV and gear box assembly for large vehicles and development of planet carrier assembly for HCVs.
Automotive Axles Ltd.
Business Overview (FY ended Mar. 31, 2019)
-In the fiscal year ended March 31, 2019, Automotive Axles Ltd. consolidated sales increased by 24.6% to INR 19,420.0 million, compared to INR 15,580.6 million in year previous.
- EBIDTA increased 35% to INR 2,320.4 million in FY 2018-19 against INR 1,715.8 million in FY 2017-18.
Investment in India
-In the fiscal year ended March 31, 2019, Automotive Axles Limited (AAL) has commenced planned capacity expansion of axle from the existing capacity of 16,500 to 20,000 per month and brakes from existing capacity of 83,000 to 120,000 per month. The expansions will be complete in mid of FY 2019-20.
-During the fiscal year ended March 31, 2019, Automotive Axles Limited (AAL) reported several new business wins and expanded its footprint in India and globally. It forayed into suspension products with the launch of new products and more are in the pipeline.
-During the fiscal year ended March 31, 2019, Automotive Axles Limited (AAL) engaged in development of MT846 axle and MT 15I design. Validation is complete on the Slipper Suspension. The advantages of this suspension are the low cost of maintenance, reduced vehicle downtime, lower weight compared to other suspension currently used, ease of adjustment of wheel alignment and the improvement tire life. Development of higher capable axle MS177 for 41 to 45 ton and MS185 for 46 to 55 ton has been initiated.
-During the fiscal year ended March 31, 2019, Automotive Axles Limited (AAL) has won Gold Award for New Product development from Ashok Leyland.