Bharat Forge rose 12.61% to Rs 814.75 at 14:50 IST on BSE after Chairman and Managing Director B.N. Kalyani said after the company's dismal Q1 June 2016 results that he believes that the phase of sequential sales decline has passed.
Meanwhile, the S&P BSE Sensex was up 248.95 points, or 0.90%, to 27,963.32.
On BSE, so far 9.44 lakh shares were traded in the counter, compared with an average daily volume of 83,462 shares in the past one quarter. The stock hit a high of Rs 819.95 and a low of Rs 719 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 underperformed the market over the past one month till 4 August 2016, falling 6.92% compared with 1.6% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 6.95% as against the Sensex's 10.41% rise.
The large-cap company has equity capital of Rs 46.56 crore. Face value per share is Rs 2.
Shares of Bharat Forge had edged lower ahead of Q1 results. The stock fell 4.69% in four trading sessions to settle at Rs 723.50 yesterday, 5 August 2016, from its close of Rs 759.10 on 29 July 2016.
Bharat Forge's net profit fell 37.7% to Rs 122.10 crore on 19.3% decline in total revenue to Rs 957.10 crore in Q1 June 2016 over Q1 June 2015. The domestic revenue registered a strong growth of Rs 10.8%, but it was negated by the 40% de-growth in exports that was affected mainly by a declining US heavy truck market and the commodity related sectors in the industrial segment.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 31.3% to Rs 253.70 crore in Q1 June 2016 over Q1 June 2015. EBITDA was adversely affected by product mix with lower value addition and lower realisation. EBITDA margins declined sharply to 26.5% in Q1 June 2016 from 31.1% in Q1 June 2015. The result was announced during trading hours today, 5 August 2016.
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Kalyani said that he expects demand for the company's products and solutions to be slightly higher in Q2 September 2016 on sequential basis on the back of positive demand in India across automotive and industrial segments. He expects the challenging exports demand environment in industrial sector to continue for some time as global economies adjust to lower commodity prices. The company's focus for the current financial year is on accelerating product development pipeline, broadening the customer base and cash conservation.
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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