Record Date Announced: Bharat Forge Sets 275% Dividend as FII Trims Stake in Q4.


Bharat Forge, a leading large-cap firm in the metal industry in India, has announced the record date for its highly anticipated FY23 dividend of 275%. As a global leader in metal forming, Bharat Forge, affiliated with the renowned Kalyani Group, serves various industries such as automotive, railways, aerospace, marine, oil & gas, power, construction, and mining. It is recognized as the largest forging firm in the world and holds a prominent position in the automotive and aerospace sectors.

Bharat Forge Sets 275% Dividend

In a recent stock exchange filing, Bharat Forge stated, "This is further to our letter dated May 05, 2023, wherein it was informed that the Board of Directors of the Company at its meeting held on Friday, May 05, 2023, had inter alia recommended a final dividend of Rs. 5.50/- per equity share, representing a remarkable 275% dividend on each share with a face value of Rs. 2/- for the financial year ended on March 31, 2023. The dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Company. To determine the entitlement of members to the final dividend, the Company has set Friday, July 07, 2023, as the Record Date, as per Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. If approved at the 62nd AGM of the Company, scheduled for Thursday, August 10, 2023, the dividend payment will be made on or after Friday, August 18, 2023."

For the fourth quarter ended March 31, 2023, Bharat Forge reported a standalone net profit of Rs. 245 crore, reflecting a 7% decline compared to the same quarter of the previous year, during which the net profit stood at Rs. 262 crore. However, the standalone revenue from operations witnessed significant growth, increasing by 19.3% to Rs. 1,997 crore for Q4FY23, compared to Rs. 1,674 crore in Q4FY22. Additionally, the company's EBITDA experienced a positive trend, rising by 13.2% to Rs. 488 crore from Rs. 431 crore in Q4FY22. Notably, the margin was recorded at 24.4%, marking a 131 basis points year-on-year decrease from 25.7%.

During Q4FY23, Bharat Forge's shareholding pattern revealed that promoters held 45.26% of the company's shares, while FIIs (Foreign Institutional Investors) held a stake of 16.17%. DIIs (Domestic Institutional Investors) accounted for a stake of 27.70%, the government held 0.18%, and the public held 10.70%. Analyzing the shareholding pattern for the January to March 2023 quarter, it was observed that promoters maintained a flat holding of 45.25% in March 2023. However, FIIs saw a decline in their stake from 17.88% in the December 2022 quarter to 16.17% in the March 2023 quarter. Mutual funds witnessed a slight increase in their stake from 19.47% to 19.89%, while institutional investors decreased their stake from 44.15% in Q3FY23 to 44.05% in Q4FY23.

Bharat Forge's record date for the 275% dividend has garnered significant attention among shareholders and investors. With its strong presence in the metal industry and diverse range of services, the company continues to be a key player in the global market. Investors and shareholders eagerly await the outcome of the upcoming Annual General Meeting, where the approval of the dividend will be determined.

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