Bharat Forge slumps on cautious outlook

Bharat Forge fell 3.92% to Rs 795 at 13:03 IST on BSE after the company reportedly issued a cautious outlook for the current financial year.

Meanwhile, the BSE Sensex was down 108.01 points, or 0.43%, to 25,202.32.

On BSE, so far 2.50 lakh shares were traded in the counter, compared with an average volume of 86,000 shares in the past two weeks.

The stock hit a high of Rs 808.15 and a low of Rs 772.85 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 772.85 on 9 December 2015.

At an analyst meet yesterday, 8 December 2015, Bharat Forge's management said that the near-term outlook remains challenging and expects standalone revenue to remain flat in the financial year ending March 2016 (FY 2016). Reports suggested that the revenue guidance was below the estimates of some analysts. A foreign brokerage firm had estimated Bharat Forge to post a 6% revenue growth this fiscal, reports added.

Citing a slowdown in US truck demand, Bharat Forge reportedly said there has been a temporary increase in inventory of heavy duty Class 8 trucks from two months to three and a half months. The company also reportedly said that there has sharp volume drop in commodity and allied business like construction, mining and oil & gas.

Bharat Forge however maintained its financial year ending March 2018 (FY 2018) revenue target of Rs 7000 crore, driven by the passenger vehicle segment, strong growth from transmission segment and execution in the domestic non-auto segment like aerospace, mining, defence, and railways, reports added.

Bharat Forge's net profit rose 0.33% to Rs 175.06 crore on 1.54% decline in net sales to Rs 1091.85 crore in Q2 September 2015 over Q2 September 2014.

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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