 "Bharat Forge bounces back after Q3 EBITDA margin rises")
Bharat Forge has moved higher by 5% to Rs 810, bouncing back 8% from intra-day’s low on the BSE, after the company said its earnings before interest, tax, depreciation and amortization (EBITDA) has seen an expansion of an over 100 basis points (bps) for the quarter ended December 31, 2015 (Q3FY16) on sequential basis.
"Favorable product mix coupled with cost control measures & low commodity prices resulted in EBITDA margin expansion of 130 bps to 31.4% in Q3FY16 from 30.1% in previous quarter. It was 30.6% in the same quarter last fiscal," the company said in a release.
Net profit of the company during the quarter under review declined 15% on year on year at Rs 1,661 crore, while total revenues fell 12% at Rs 10,520 crore over the previous year quarter.
"During the quarter, despite higher automotive sales, continued weakness in the industrial sector across both, domestic and international markets adversely impacted the overall topline," said B.N.Kalyani, Chairman & Managing Director, Bharat Forge in a release.
Analysts, on an average, had expected profit of Rs 180 crore on revenues of Rs 1,286 crore for the quarter. Meanwhile, the board of directors of the company has declared an interim dividend of 150% or Rs 3 per equity share of Rs 2 each.
The stock hit an intra-day low of Rs 748 before the announcements of Q3 results. The trading volumes on the counter jumped nearly three-fold with a combined 2.25 million shares changed hands on the BSE and NSE till 01:31 PM.
"Favorable product mix coupled with cost control measures & low commodity prices resulted in EBITDA margin expansion of 130 bps to 31.4% in Q3FY16 from 30.1% in previous quarter. It was 30.6% in the same quarter last fiscal," the company said in a release.
Net profit of the company during the quarter under review declined 15% on year on year at Rs 1,661 crore, while total revenues fell 12% at Rs 10,520 crore over the previous year quarter.
"During the quarter, despite higher automotive sales, continued weakness in the industrial sector across both, domestic and international markets adversely impacted the overall topline," said B.N.Kalyani, Chairman & Managing Director, Bharat Forge in a release.
Analysts, on an average, had expected profit of Rs 180 crore on revenues of Rs 1,286 crore for the quarter. Meanwhile, the board of directors of the company has declared an interim dividend of 150% or Rs 3 per equity share of Rs 2 each.
The stock hit an intra-day low of Rs 748 before the announcements of Q3 results. The trading volumes on the counter jumped nearly three-fold with a combined 2.25 million shares changed hands on the BSE and NSE till 01:31 PM.
