Bharat Forge gains after reporting strong Q1 results

Bharat Forge rose 2.07% to Rs 1,169.65 at 14:50 IST on BSE after 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.

The result was announced during market hours today, 3 August 2015.

Meanwhile, the S&P BSE Sensex was up 86.31 points or 0.31% at 28,200.87.

On BSE, so far 2.62 lakh shares were traded in the counter as against average daily volume of 1.12 lakh shares in the past one quarter.

The stock hit a high of Rs 1,199 and a low of Rs 1,129 so far during the day. The stock had hit a record high of Rs 1,362.90 on 6 April 2015. The stock had hit a 52-week low of Rs 710 on 1 August 2014.

The stock had outperformed the market over the past one month till 31 July 2015, rising 7.8% compared with Sensex's 1.2% gain. The scrip had however underperformed the market in past one quarter, dropping 8.62% as against Sensex's 4.08% gain.

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

Bharat Forge's growth in total revenues was mainly driven by a growth of 20.9% in export revenues on account of underlying market growth & increased market share. EBITDA (earnings before interest, taxes, depreciation and amortization) margins rose by 2.4% at 31.8% in Q1 June 2015 over Q1 June 2014 on the back of improvement in operational efficiency and cost optimisation. EBITDA rose 23.5% to Rs 3590 crore in Q1 June 2015 over Q1 June 2014. The shipment tonnage increased 5.8% to 51,984 tonnes in Q1 June 2015 over Q1 June 2014.

B N Kalyani Chairman and Managing Director of Bharat Forge said: looking ahead into Q2 September 2015, the company anticipate demand to be higher compared to Q2 September 2014, with positive automotive demand while the challenging demand environment in the industrial sector will continue for some more time as the global economies adjust to the lower commodity prices.

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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