Kalyani Group Business Report FY ended Mar. 2018
Bharat Forge Ltd.
Financial Overview (FY ended Mar. 31, 2018)
-In the fiscal year ended March 31, 2018, the Company's consolidated sales increased by 27.4% at INR 85,566.8 million compared to INR 67,174.4 million in the previous fiscal year. The Company's sales were increased by increasing contribution from Passenger Vehicles by new customer additions and value-added products.
-The Company’s EBITDA of INR 17,787 million in the fiscal year ended March 31, 2018 up by 39.9% to the EBITDA of INR 12,717 million in the previous fiscal year. EBITDA percentage increased from to 21.3% compared to 19.9% in year previous.
Financial Overview (FY ended Mar. 31, 2017)
-In the fiscal year ended March 31, 2017, the Company's consolidated sales down by 5.8% at INR 67,174.4 million compared to INR 71,336.8 million in the previous fiscal year. The Company's sales were negatively affected due to weak export demand and disappointing growth in the Indian M&HCV space.
-The Company’s EBITDA of INR 12,717.8 million in the fiscal year ended March 31, 2017 down by 12.1% to the EBITDA of INR 14,475.8 million in the previous fiscal year. EBITDA percentage declined by 300 bps from 30.1% in FY 2015-16 to 27.1% in FY 2016-17 on the back of decline in total income.
Financial Overview (FY ended Mar. 31, 2016)
-In the fiscal year ended March 31, 2016, the Company's consolidated sales remained flat at INR 77,801 million compared to INR 77,589 in the previous fiscal year. The Company's sales were negatively affected due to the slowdown in the North American Class 8 truck market. However, growth in the passenger vehicle segment offset those losses.
-The Company’s EBITDA of INR 14,745 million in the fiscal year ended March 31, 2016 remained level compared to the EBITDA of INR 14,750 million in the previous fiscal year. EBITDA margins were also flat at 19.3% as the increase in project related costs were negated by favorable input prices.
-During the fiscal year ended March 31, 2018, the Company announced a strategic investment of GBP 10 million in Tevva Motors (Jersey) Limited. The company is setting up a Center for Light Weighting Technology (LWT), a fully automated state of the art manufacturing plant in Andhra Pradesh focused on Aluminum and Magnesium component and products.
-During the fiscal year ended March 31, 2017, Its wholly-owned subsidiary, Bharat Forge America has completed acquisition of two U.S. companies, Walker Forge Tennessee LLC (WFT) and PMT Holdings Inc.
-During the fiscal year ended March 31, 2017, the Company divested its 49% stake in Joint Venture with Alstom, Alstom Bharat Forge Power Private Limited (ABFPPL).
-During the fiscal year ended March 31, 2016, the manufacturing operations of CDP Bharat Forge GmbH were transferred to a new subsidiary company in Germany called Bharat Forge CDP GmbH (BF CDP).
-In the fiscal year ended March 31, 2016, Bharat Forge Aluminiumtechnik GmbH & Co. KG was changed from a partnership firm to a limited liability company named Bharat Forge Aluminiumtechnik GmbH.
-Bharat Forge 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. Bharat Forge's stake was sold to KPIT Technologies for INR 108 million. (From an announcement on September 8, 2014)
-During the fiscal year ended March 31, 2018, the Company has secured long term orders of INR 7 billion across various segments & geographies. Over the past two years, new business wins of INR 15 billion have been secured, 90% of the wins being from the passenger vehicles segment.
-Bharat Forge 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)
-The Company plans greenfield investment to increase forging and machining capacity, improve free cash flow, maintain strong balance sheet and improve return ratios and focus on creating a footprint in the new strategic businesses.
-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.
Investment Outside India
-In June 2018, the Company acquired Tevva Motors (Jersey) Limited for GBP 10 million. Based in Chelmsford, UK, Tevva provides electric powertrain solutions for commercial vehicles & buses in the 7.5 -14 tons weight category.
-In January 2018, the Company has opened a research and development facility in UK, in MIRA Technology Park. The company will develop component and sub system focused on electric vehicle.
-In August 2016, the Company acquired shares of its UK-based subsidiary, Bharat Forge International (BFIL), from Bharat Forge Global Holding GMBH for USD 4,544,000. Consequently, BFIL has become a wholly owned subsidiary of the Company.
-In December 2016, the Company acquired 100% of Walker Forge Tennessee LLC & PMT Holdings Inc. USA (WFT) for USD 14 million through its U.S. subsidiary, Bharat Forge America Inc. USA. WFT is a leading supplier of complex and high alloy steel engine and chassis components to a diverse group of customers across the automotive and industrial sectors.
-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).
-In January 2018, the Company has incorporated a wholly owned subsidiary "Indigeneous IL" in Israel. It is started with an object of exploring targets in the technology space and also tie up with universities/technology institutions in further upgrading research and developmental initiatives in various new technologies.
Automotive Axles Ltd.
Note: Starting in 2015, Automotive Axles changed their fiscal year period from a year ending in September, to a year ending in March. Thus, figures reported for the period ended in March 2015 reflect a time span of approximately six months and cannot be directly compared to figures from previous fiscal years.
Business Overview (FY ended Mar. 31, 2018)
-In the fiscal year ended March 31, 2018, Automotive Axles Ltd. consolidated sales increased by 19% to INR 15,580.6 million, compared to INR 13,039.9 million in year previous.
-EBITDA increased 48% to INR 1,716 million in FY 2017-18 against INR 1,156 million in FY 2016-17.
Business Overview (FY ended Mar. 31, 2017)
-In the fiscal year ended March 31, 2017, Automotive Axles Ltd. consolidated sales increased by 5.63% to INR 11,488 million compared to INR 10,875 million. The company sales increase due to growth in the existing vertical and increased customer penetration, new product developments in existing and new markets.
-In the fiscal year ended March 31, 2017, EBITDA of Automotive Axles was INR 1,142 million, increasing by 18.58% from INR 963 million during previous 12 months.
Business Overview (FY ended Mar. 31, 2016)
-In the fiscal year ended March 31, 2016, Automotive Axles Ltd. consolidated sales increased 30% to INR 10.9 billion. The company sales increase due to growth in the existing vertical and increased customer penetration, new product developments in existing and new markets.
-In the fiscal year ended March 31, 2016, EBITDA of Automotive Axles was INR 973 million, increasing by 38% from INR 707 million during previous 12 months.
Investment in India
-In the fiscal year ended March 31, 2018, Automotive Axles Limited (AAL) has upgraded its state-of-the-art manufacturing facilities with modern equipment and technologies such as Face-Hob Gear Cutting and Robotic Gear Quenching for enhanced productivity and energy conservation. It has implemented forward integration by incorporating brake setting and oil filling operations into our production, assembly and testing facilities. AAL also planned to increase axle capacity and brakes capacity to cater to the increasing demand of our customers.
-Company made capital investments amounting to INR 39.70 million during the financial year 2016-17 on energy conservation equipment which resulted in saving of INR 12.50 million.
-Initiated capacity expansion projects to ramp up production to cater to increased market requirement: Layout change activities, Low-cost automation to meet increased requirement of Tandem axles.
-Separated export production line and commissioned specialty axles plant to cater to the demand for customised axles.
-In the fiscal year ended March 31, 2015, Automotive Axle Limited started operations of a new production line in its Mysore plant for hub reduction axles. The new line doubled the monthly production capacity of hub reduction axles to 600 sets.
-In the fiscal year ended March 31, 2015, Automotive Axle Limited established a new plant in Jamshedpur, India to develop brakes and trailer axles. The new plant has a monthly production capacity of 30,000 brakes and 2,400 axles.
Kalyani Lemmerz Ltd.
Investment in India
-In November 2010, Kalyani Hayes Lemmerz opened a new passenger car wheel plant in India. Kalyani Hayes Lemmerz has booked 1.7 million of its 2 million wheel capacity to meet orders from Fiat, Tata Motors, Mahindra & Mahindra, VW India, VW USA, VW Mexico, VW China, Ford India and Renault Nissan India. (From a press release on November 23, 2010)