Shares of Bharat Forge Ltd. fell for a second day after a JPMorgan report signalled continued pressure on the company's U.S. operations.
Bharat Forge's preliminary class 8 truck sales in the U.S. declined 28 percent year-on-year to 13,900 units in September, according to JPMorgan. Sales declined 2 percent compared to August.
The brokerage house added that expectations of a recovery in 2017 now seemed stretched. About 20 percent of Bharat Forge's revenue in the first quarter of financial year 2016-17 came from the North American truck market.
The company is already facing pressure from the weak demand and inventory de-stocking in the oil and gas sector, and the severe downturn in the North American truck market, two of Bharat Forge's largest revenue segments.
North America Class 8 truck market continues to be affected by low average equipment utilization and an increase in the truck dealer inventory levels.Bharat Forge Investor Presentation, October 2016
Bharat Forge stock was trading 0.79 percent lower at Rs 916.25 as of 11:30 a.m. The stock had lost 1.72 percent on Tuesday.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
