Force Motors has rallied 7% to Rs 264, in otherwise weak market, after reporting a strong 38% year-on-year (yoy) growth in net profit at Rs 14 crore for the quarter ended June 30, 2013 (Q1) on the back of robust operating performance. The company had reported a loss of Rs 23 crore in March quarter.
On operating front, EBITDA surged by 89% yoy to Rs 33 crore while margins expanded by 305bp yoy to 6.5% from 3.4% in the same quarter previous year.
Margin expansion was largely due to reduced raw material cost as percentage of sales (by 6.5%) which was partially offset by increased other expenses (by 9.5%), says analyst at Angel Broking in a note.
The company’s total income from operations however, remained unchanged at Rs 504 crore during the quarter against Rs 505 crore in a year ago quarter.
The stock opened at Rs 273 and touched high of Rs 280 on BSE. Around 1,783 shares changed hands on the counter so far.
On operating front, EBITDA surged by 89% yoy to Rs 33 crore while margins expanded by 305bp yoy to 6.5% from 3.4% in the same quarter previous year.
Margin expansion was largely due to reduced raw material cost as percentage of sales (by 6.5%) which was partially offset by increased other expenses (by 9.5%), says analyst at Angel Broking in a note.
The company’s total income from operations however, remained unchanged at Rs 504 crore during the quarter against Rs 505 crore in a year ago quarter.
The stock opened at Rs 273 and touched high of Rs 280 on BSE. Around 1,783 shares changed hands on the counter so far.
