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Bharat Forge slips on report of slowdown in North American truck market

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Capital Market
Last Updated : Oct 06 2015 | 4:01 PM IST

Bharat Forge fell 1.91% to Rs 929.90 at 13:55 IST on BSE on reports of further decline in order inflow for class 8 trucks in North America.

Meanwhile, the BSE Sensex was up 104.80 points, or 0.39%, to 26,890.35.

On BSE, so far 62,000 shares were traded in the counter, compared with an average volume of 2.09 lakh shares in the past two weeks.

The stock hit a high of Rs 959 and a low of Rs 925.85 so far during the day. The stock hit a 52-week high of Rs 1,362.90 on 6 April 2015. The stock hit a 52-week low of Rs 713.30 on 13 October 2014.

According to reports, order inflows for class 8 trucks (the largest size trucks) in North America fell by 21% to 19,460 units in September 2015 over September 2014 (preliminary data as per Freight Transportation Research). This is the seventh consecutive month of decline. Order inflows fell by 18.5% year-on-year (YoY) over the March-September 2015 period. This is also the lowest level of order inflows since October 2013. Over April-August 2015, production averaged around 28,000 per units per month, while order inflows averaged around 21,000 units.

Reports suggest that Bharat Forge derived around 20% of its financial year ended March 2015 (FY 2015) standalone revenues from the North American heavy trucks segment and a slowdown in this could have an impact on sales growth in financial year ended March 2016.

Bharat Forge's net profit rose 34.8% to Rs 195.40 crore on 14.2% rise in total revenues to Rs 1128.50 crore in Q1 June 2015 over Q1 June 2014.

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Bharat Forge (BFL), the Pune-based Indian multinational is a technology driven global leader in metal forming having transcontinental presence across nine manufacturing locations, serving several sectors including automotive, power, oil and gas, construction & mining, locomotive, marine and aerospace.

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First Published: Oct 06 2015 | 2:10 PM IST

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