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.
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