Bharat Forge Ltd. Business Report FY ended Mar. 2015

Financial Overview

-In the fiscal year ended March 31, 2015, the Company's consolidated sales increased 13.5% to INR 76,248 million. The increase in sales was caused by growth in the Company's standalone operations and an industrial contract won by the Company's Alstrom joint venture.

-The Company's EBITDA increased by 43.2% in the fiscal year ended March 31, 2015 to INR 14,751 million. Improvements in profitability occurred both in the Company's standalone operations as well as its Indian subsidiaries. In the previous fiscal year, the Company's Indian subsidiaries had suffered EBITDA losses.

Restructuring

Divestiture of stake in hybrid system joint venture
-The Company divested its 50% stake in the joint venture Impact Automotive Solutions Limited to its joint venture partner, KPIT Technologies Limited. Impact Automotive Solutions was formed in 2010 for the development and manufacturing of automotive hybrid solutions. The Company's stake was sold to KPIT Technologies for INR 108 million. (From an announcement on September 8, 2014)

Contracts

-The Company announced that its German subsidiary Bharat Forge Aluminiumtechnik GmbH & Co KG (BFAT) has won a multi-year contract approximately worth EUR 250 million from a German OEM for the supply of suspension components. BFAT will add a new press line to produce additional components for this contract. (From a press release on May 8, 2014)

Outlook

-The Company plans to double its standalone revenue from INR 34 billion of fiscal year ended in March 2014 to INR 70 billion by the fiscal year ending in March 2018.

R&D Expenditure

(in million INR)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	421.4	256.1	147.2

R&D Activities

-In the fiscal year ended March 31, 2015, the Company's R&D activities focused on the development of additive manufacturing (3D printing) processes for metals, and the development of cold and precision forging processes and technologies.

Patents

-During the fiscal year ended March 31, 2015, the Company filed seven patent applications. The Company has filed a total of 13 patents in its lifetime.

Investments outside India

-The Company's subsidiary, Bharat Forge Aluminiumtechnik GmbH & Co. KG (BFAT), is increasing its production capacity due to a new EUR 250 million contract to provide suspension components for a German OEM. BFAT is adding a new press line with auxiliary equipment and capabilities including melting. The new press line will be commissioned in January 2015 and will be set up in the state of Saxony at Brand-Erbisdorf. A total of EUR 31 million will be invested into the new line. (From a press release on May 8, 2014)