Bharat Forge slips after weak sequential Q3 results

Bharat Forge fell 1.31% to Rs 338.20 at 14:00 IST on BSE after net profit fell 2.5% to Rs 94 crore on 1.5% fall in total revenues to Rs 832.10 crore in Q3 December 2013 over Q2 September 2013.

The result was announced during trading hours today, 4 February 2014.

Meanwhile, the BSE Sensex was down 74.74 points, or 0.37%, to 20,134.52.

On BSE, so far 1.44 lakh shares were traded in the counter, compared with an average volume of 41,397 shares in the past one quarter.

The counter was volatile. The stock rose 1.25% at the day's high of Rs 347. It fell 2.66% at the day's low of Rs 333.60. The stock hit a 52-week high of Rs 353 on Monday, 3 February 2014. The stock hit a 52-week low of Rs 185.55 on 6 August 2013.

The stock had outperformed the market over the past one month till 3 February 2014, rising 7.08% compared with the Sensex's 3.08% fall. The scrip had outperformed the market in past one quarter, rising 15.39% as against Sensex's 4.85% decline.

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

Bharat Forge's net profit rose 97.9% to Rs 94 crore on 23.7% increase in total revenues to Rs 832.10 crore in Q3 December 2013 over Q3 December 2012.

EBITDA (earnings before interest, taxes, depreciation and amortization) fell 3.7% to Rs 214.50 crore in Q3 December 2013 over Q2 September 2013. EBITDA jumped 54.7% in Q3 December 2013 over Q3 December 2012.

EBITDA margins stood at 25.8% in Q3 December 2013, lower than 26.4% in Q2 September 2013 and higher than 20.6% in Q3 December 2012.

B.N. Kalyani, Chairman & Managing Director said, "Bharat Forge continues to do well despite the domestic slowdown because of a diversified product mix and strategic entry in to the non-automotive sectors in 2008. We continue to win new orders across auto & non-auto segments.

In the quarter gone by, sales developed in line with expectations while it witnessed a strong improvement over the weak 3rd quarter previous year.

The international operations have also registered strong performance driven by cost controls, productivity improvements and innovative new products.

Looking ahead, we expect to see demand levels across geographies stabilizing with an upward bias. Overall demand is expected to be moderately better in Q4 FY14 driven by exports & early signs of recovery in India."

Bharat Forge, the flagship company of Kalyani Group, is a global forgings conglomerate. It is the largest exporter of auto components from India and leading chassis component manufacturer in the world.

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