|
42 |
Investment in an associate |
|
a. |
The Group held 47.99% interest in KTM AG, Austria which was swapped for 49.90% stake in Pierer Bajaj AG on 29 September 2021. |
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Pierer Bajaj AG (formerly: PTW Holding AG) acts exclusively as the holding company of Pierer Mobility AG. The Pierer Mobility Group is Europe’s leading ‘Powered Two-Wheeler’ (PTW) manufacturer with a focus on highly innovative sports motorcycles and electric mobility. With its KTM, HUSQVARNA Motorcycles, and GASGAS motorcycle brands, it is one of the technology and market leaders in Europe, especially when it comes to premium motorcycles. |
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Pierer Bajaj AG is a private entity that is not listed on any public exchange. The Group’s interest is in Pierer Bajaj AG. |
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The following table illustrates the summarised financial information of the Group’s investment in Pierer Bajaj AG (in Euro, which is its functional currency): |
|
(Euro in Million) |
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|
Particulars |
Pierer Bajaj AG |
|||
|
31 Dec 2024 |
31 Dec 2023 |
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|
|
||||
|
Current assets |
1,242.67 |
1,625.81 |
||
|
Non-current assets |
947.51 |
1,333.83 |
||
|
Assets held for sale and disposal groups |
206.66 |
3.70 |
||
|
Current liabilities |
2,328.16 |
929.77 |
||
|
Non-current liabilities |
196.08 |
1,130.00 |
||
|
Liabilities in connection with assets held for sale and disposal groups |
67.23 |
– |
||
|
Equity |
(194.63) |
903.57 |
||
|
|
||||
|
Revenue |
1,879.02 |
2,661.21 |
||
|
Cost of sales |
(1,929.98) |
(1,977.12) |
||
|
Gross profit |
(50.96) |
684.09 |
||
|
Selling and racing expenses |
(299.37) |
(289.84) |
||
|
Research and development expenses |
(80.44) |
(53.76) |
||
|
Administration expenses |
(197.35) |
(185.98) |
||
|
Other operating expenses |
(57.03) |
(0.80) |
||
|
Expenses for impairments |
(507.98) |
– |
||
|
Other operating income |
17.71 |
3.74 |
||
|
Share of profit of associates |
(9.02) |
2.34 |
||
|
Result from operating activities |
(1,184.44) |
159.79 |
||
|
Interest income |
26.41 |
11.06 |
||
|
Interest expenses |
(124.49) |
(74.03) |
||
|
Other financial result |
5.42 |
(4.62) |
||
|
Profit before tax |
(1,277.10) |
92.20 |
||
|
Tax expense |
196.69 |
(15.72) |
||
|
Profit for the year (continuing operations) |
(1,080.41) |
76.48 |
||
|
Total comprehensive income for the year (continuing operations) |
(1,082.08) |
63.35 |
||
|
b. |
During the year ended 31 March 2025, the Group has recognized a net loss of ₹ 915.48 crore in the consolidated financial statements related to its investment in associate entity, Pierer Bajaj AG (PBAG). This comprises share of loss of ₹ 314.55 crore, accounted for under the equity method, and an impairment loss of ₹ 600.93 crore on the carrying value of net investment in the associate. |
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The share of loss of ₹ 314.55 crore includes a proportionate share of gain of ₹ 3,075.11 crore recognised by KTM AG pertaining to write back of liabilities, consequent to the creditors meeting dated 25 February 2025, which was part of the financial restructuring process of KTM AG under court approved self-administration proceedings. |
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The impairment loss of ₹ 600.93 crore has been recognized on the Group’s carrying value of net investment in associate forming part of automotive segment based on a computation of value in use pursuant to restructuring of KTM AG which included comprehensive review of the underlying valuation and long-term cash flow projections of operating entity KTM AG. The impairment assessment considered multiple scenarios and incorporated potential downside risks to future performance, including sensitivity to macroeconomic conditions, market demand, and execution of the restructured business plan. |