Bharat Forge has moved higher by nearly 13% to Rs 224 after reporting a better-than-expected net profit of Rs 91 crore for the quarter ended June 30, 2013 (Q1), due to lower raw materials and manufacturing cost. Analyst expected a profit of Rs 67 crore for the quarter.
The company had reported profit of Rs 50 crore in March quarter and Rs 105 crore in June quarter last year.
Profitability is improving due to strong execution and improving demand from export markets, said B N Kalyani, chairman and managing director of Bharat Forge.
Demand was better than initially anticipated during the quarter and this coupled with improvement in operational efficiency over the past two quarters enabled us to deliver significant healthier financial parameters across the board, he added.
Meanwhile, the company’s total income from operations during the quarter declined by 15.4% at Rs 792 crore, while total expenditure fell by 14% at Rs 657 crore over the previous year quarter.
The stock opened at Rs 200 and hit a low of Rs 197 on NSE. A combined around 1.06 million shares changed hands on the counter till 1059 hours against an average sub one million shares that were traded daily in past two weeks on NSE and BSE.
The company had reported profit of Rs 50 crore in March quarter and Rs 105 crore in June quarter last year.
Profitability is improving due to strong execution and improving demand from export markets, said B N Kalyani, chairman and managing director of Bharat Forge.
Demand was better than initially anticipated during the quarter and this coupled with improvement in operational efficiency over the past two quarters enabled us to deliver significant healthier financial parameters across the board, he added.
Meanwhile, the company’s total income from operations during the quarter declined by 15.4% at Rs 792 crore, while total expenditure fell by 14% at Rs 657 crore over the previous year quarter.
The stock opened at Rs 200 and hit a low of Rs 197 on NSE. A combined around 1.06 million shares changed hands on the counter till 1059 hours against an average sub one million shares that were traded daily in past two weeks on NSE and BSE.