Bharat Forge declines on anticipation of slightly muted demand in Q1 June 2015 sequentially

Bharat Forge declined 3% to Rs 1,250 at 14:20 IST on BSE after its Chairman & Managing Director B.N. Kalyani anticipated demand in Q1 June 2015 to be slightly muted compared to Q4 March 2015.

The company announced results during market hours today, 20 May 2015.

Meanwhile, the S&P BSE Sensex was up 144.32 points or 0.52% at 27,789.85.

On BSE, so far 3.52 lakh shares were traded in the counter as against average daily volume of 95,866 shares in the past one quarter.

The stock hit a high of Rs 1,332 and a low of Rs 1,245.10 so far during the day. The stock had hit a record high of Rs 1362.90 on 6 April 2015. The stock had hit a 52-week low of Rs 454.50 on 19 May 2014.

The stock had outperformed the market over the past one month till 19 May 2015, gaining 7.7% compared with Sensex's 2.8% fall. The scrip had also outperformed the market in past one quarter, gaining 3.25% as against Sensex's 6.17% fall.

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

Bharat Forge's Chairman & Managing Director B.N. Kalyani said at the time of announcing Q4 results that looking ahead in Q1 June 2015 the company anticipate demand to be higher compared to Q1 June 2014 but slightly muted compared to Q4 March 2015, primarily due to lower than anticipated recovery in the India Medium & Heavy Commercial Vehicle market & decline in the oil & gas business.

Bharat Forge's net profit rose 70.76% to Rs 203.18 crore on 29.15% rise in total income to Rs 1243.92 crore in Q4 March 2015 over Q4 March 2014.

Bharat Forge's shipment tonnage rose 18% to 56,679 tonnes in Q4 March 2015 over Q4 March 2014, on back of growth in domestic M&HCV market and export market. Revenues grew 31.5% to Rs 1223.90 crore in Q4 March 2015 over Q4 March 2014, driven by 45.3% growth in export revenues and 15.6% increase in domestic revenues. EBITDA (earnings before interest, taxes, depreciation and amortization) margin stood at 30% in Q4 March 2015 with an improvement of 5.2% compared to Q4 March 2014, primarily driven by increased capacity utilisation and favourable product mix.

Profit before tax (PBT) before exchange gain/loss and exceptional item rose 84.4% to Rs 315.40 crore in Q4 March 2015 over Q4 March 2014. The increase in PBT is a result of its focus on controlling fixed cost and seating of assets.

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

Powered by Capital Market - Live News