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Bharat Forge slips after North American heavy truck orders slip further in June

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Capital Market
Last Updated : Jul 07 2016 | 1:01 PM IST

Bharat Forge fell 2.31% to Rs 750.50 at 12:50 IST on BSE after North American orders for Class 8 trucks in June 2016 fell to the lowest point in nearly six years.

Meanwhile, the BSE Sensex was up 50.61 points, or 0.19%, to 27,217.48.

On BSE, so far 45,000 shares were traded in the counter, compared with average daily volume of 80,408 shares in the past one quarter. The stock hit a high of Rs 764.20 and a low of Rs 747.85 so far during the day. The stock hit a 52-week high of Rs 1,292.50 on 20 August 2015. The stock hit a 52-week low of Rs 686.80 on 24 June 2016. The stock had outperformed the market over the past 30 days till 5 July 2016, rising 3.75% compared with 1.45% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 2.71% as against Sensex's 9.10% rise.

The large-cap company has an equity capital of Rs 46.56 crore. Face value per share is Rs 2.

North American heavy truck orders (Class 8) were for 13,100 units in June, the lowest figure since the third quarter of 2010, preliminary figures from ACT Research showed yesterday, 6 July 2016. The figure was down 35% compared with 20,287 a year earlier, according to ACT. At the same time, June orders were down about 8% compared with a total of 14,224 in May 2016. Final June numbers will be published in mid-July.

Bharat Forge has been facing significant pressure in terms of order inflows from North America over the last few months, as per reports. The company derives 20% of its revenue from North America Class 8 trucks segment, reports indicated.

Bharat Forge's net profit fell 19% to Rs 164.52 crore on 17.4% decline in net sales to Rs 987.07 crore in Q4 March 2016 over Q4 March 2015.

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Bharat Forge is the flagship company of Kalyani Group. It is a global provider of high performance, innovative, safety & critical components and solutions to various industrial sectors including automotive, oil & gas, power, construction & mining, aerospace and rail & marine.

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First Published: Jul 07 2016 | 12:43 PM IST

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