Bharat Forge spurts after strong sequential results

Bharat Forge surged 12.48% to Rs 223 at 11:22 IST on BSE after net profit surged 80.8% to Rs 90.60 crore on 17.3% increase in total revenues to Rs 791.50 crore in Q1 June 2013 over Q4 March 2013.

The company announced the results before trading hours today, 8 August 2013.

Meanwhile, the S&P BSE Sensex was 31.50 points, or 0.17%, to 18,696.38.

On BSE, 2.08 lakh shares were traded in the counter as against an average daily volume of 24,995 shares in the past one quarter.

The stock hit a high of Rs 224.50 and a low of Rs 193 so far during the day. The stock had hit a 52-week low of Rs 185.55 on Tuesday, 6 August 2013. The stock had hit a 52-week high of Rs 318 on 8 August 2012.

The stock had underperformed the market over the past one month till 7 August 2013, sliding 8% compared with the Sensex's 4.26% fall. The scrip had also underperformed the market in past one quarter, sliding 19.02% as against Sensex's 6.15% fall.

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

Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 28.5% to Rs 196 crore in Q1 June 2013 over Q4 March 2013. EBITDA margin increased to 24.8% in Q1 June 2013 compared with 22.6% in Q4 March 2013.

The company's net profit fell 13.9% to Rs 90.60 crore on 15.5% decline in total revenues to Rs 791.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA fell 28.5% to Rs 196 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin decreased to 24.8% in Q1 June 2013 compared with 25.1% in Q1 June 2012.

B N Kalyani, chairman & managing director, Bharat Forge, said, "The company has delivered a good performance in the quarter gone by. Demand was better than initially anticipated during the quarter and this coupled with improvement in operational efficiency over the past two quarters enabled us to deliver sequentially healthier financial parameters across the board. While we are witnessing demand decline in India, profitability is improving due to strong execution and improving demand from export markets. Despite the weak environment, we continue to win new business in passenger vehicle, utility vehicles and industrial segments and simultaneously increase market share. We currently continue to witness volatility across business verticles and geographies and expect demand to remain at similar levels in Q2 as compared to Q1."

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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