Bharat Forge Ltd.'s second-quarter profit missed estimates as margins contracted sharply due to elevated raw material, finance and employee costs.
The company's consolidated net profit fell 48% year-on-year to Rs 141.6 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 256.8-crore consensus estimate of analysts tracked by Bloomberg.
Bharat Forge Q2 FY23 Consolidated (YoY):
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Revenue rose 29% to Rs 3,076.4 crore, against a forecast of Rs 2,894.4 crore.
Ebitda down 15% at Rs 432 crore, compared with an estimate of Rs 497.9 crore.
Ebitda margin at 14% versus 21.4% last year. Analysts had projected it at 17.2%.
The sharp contraction in operating margin came amid 39% growth in total expenses, compared with a 29% increase in revenues.
The raw material costs jumped 36% to Rs 1,446 crore. Finance costs more than doubled to Rs 52.6 crore, while employee bill rose nearly 26% to Rs 400.6 crore.
Shares of Bharat Forge were trading 3.6% lower as of 1.21 p.m., against a 0.1% fall in the benchmark Nifty 50.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
