Bharat Forge share price fell close to 2 per cent intraday on the NSE after the flagship company of the Kalyani Group said that its profit fell 26.4 per cent year-on-year and 2.2 per cent quarter-on-quarter to Rs 127 cr in July-September quarter. It was affected by revenue and operational performance. Revenue during the quarter declined 20 per cent to Rs 936 cr as domestic business was down 6.5 per cent and exports dropped 30.3 per cent.
Shipment tonnage in Q2 stood at 46,203 tonnes, down 15.3 per cent compared with 54,559 tonnes in year-ago period. BN Kalyani, CMD said the company expects export markets in the third quarter to remain sluggish, albeit it sees some green shoots in oil and gas and allied sectors. However, it expects increased demand condition in India across the automotive and industrial segments.
During the quarter, the firm has further strengthened its market share in the North American joint venture (JV) market with addition of a customer, while in the Indian subcontinent the firm has added two new customers in the passenger vehicle segment.
EBITDA or earnings before interest, tax, depreciation and amortization slipped 22.7 per cent year-on-year to Rs 247.7 cr and margin contracted by 90 basis points to 26.5 per cent in the quarter ended September 2016.
Earnings except revenue missed analysts’ expectations. Profit was estimated at Rs 129 cr on revenue of Rs 917 cr and EBITDA was expected at Rs 255 cr with margin of 27.8 per cent for the quarter, according to analysts polled by the media.
Meanwhile, Bharat Forge said the board of directors today has approved sale of its 49 per cent stake in the power equipment joint venture (JV) with Alstom, Alstom Bharat Forge Power Private Limited for USD 35 million to GE Pacific. At 13:51 hours IST, the stock was quoting at Rs 854.45, down Rs 3.80, or 0.44 per cent on the BSE. For more details, visit Bharat Forge share price history.
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