Bharat Forge de-registers Hong Kong subsidiary

Pune-based auto and industrial forging giant Bharat Forge, on Tuesday after market hours, announced that it has de-registered its subsidiary in Hong Kong.

Bharat Forge Hong Kong Limited has been an inactive company for quite some time and was not commercially operational. It was engaged in investment holding business and its closure would not have any material impact on consolidated financials of the company.

Historically, Bharat Forge had formed a JV with FAW Corporation, named as FAW Bharat Forge (Changchun), which was divested in 2014. Both companies have suffered losses in the past. According to its FY13 annual report, Bharat Forge Hong Kong and FAW Bharat Forge (Changchun) had reported losses of Rs 47 crore and Rs 61 crore, respectively.

The company has a few other foreign subsidiaries, which have reported losses in FY19. Bharat Forge Global Holding GmbH, Bharat Forge Kilsta AB, Mécanique Générale Langroise, and Bharat Forge PMT Technologie LLC have contributed to consolidated losses of the company.

On the other hand, Bharat Forge CDP GmgH and Bharat Forge International Limited reported profits of Rs 54 crore and Rs 31.4 crore, respectively in FY19.

On Wednesday, the stock opened lower by 0.1 per cent at Rs 383. on BSE.