Bharat Forge Ltd.'s fourth-quarter net profit fell and missed estimates as higher expenses weighed on profitability.
The company's consolidated net profit fell 43% to Rs 135.5 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 286 crore consensus estimate of analysts tracked by Bloomberg.
Bharat Forge Q4 FY23 Consolidated (YoY):
Revenue rose 2% to Rs 3,629 crore. (Bloomberg estimate: Rs 2,728 crore).
Ebitda fell 21% to Rs 438.5 crore. (Bloomberg estimate: Rs 547 crore).
Ebitda margin is 12.1% versus 15.5% last year. (Bloomberg estimate: 20.1%).
The company's operating margin contracted sharply by 340 basis points as total expenses rose 5% against a 2% rise in revenue from operations.
The cost of raw materials rose 12% year-on-year, while other expenses jumped 13% due to foreign exchange losses.
Shares of Bharat Forge were trading 2.3% lower against a 0.6% fall in the benchmark Nifty 50 at 1.05 p.m.
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