Bharat Forge Slides After Second Quarter Profit Falls 26%
Bharat Forge Ltd. marginally missed analyst estimates in the September quarter, with a 26.2 percent fall in its net profit.
Net profit came in at Rs 127 crore compared to Rs 172 crore in the July-September quarter last year, according to its filing on the stock exchanges. This was in-line with the Rs 130 crore consensus estimate of the analysts tracked by Bloomberg.
Revenue decreased 20.1 percent to Rs 935.91 crore from Rs 1,171 crore during the same period last year.
Earnings before interest, tax, depreciation and amortisation fell 22.7 percent to Rs 247.67 crore compared to Rs 320.47 crore last year. The margins contracted 90 basis points to 26.5 percent as against 27.4 percent earlier.
India Business: Optimistic Outlook
The business has clearly bottomed out, Baba Kalyani, the chairman and managing director of Bharat Forge said in the press release, even as he warned of further sluggishness in exports markets.
Looking ahead into the third quarter, we anticipate improved demand conditions in India, across automotive and industrial segments. We expect the exports market to remain sluggish, although we see some green shoots in the oil and gas allied sectors.Baba Kalyani, Chairman And Managing Director, Bharat Forge
Joint Venture Stake Sale
The board of directors approved the sale of the company's 49 percent stake in its joint venture Alstom Bharat Forge Power Pvt. Ltd. to GE Pacific Pvt. Ltd. for $35 million subject to regulatory approval, the company said in a separate filing.
Shares of Bharat Forge fell as much as 1.92 percent to Rs 842.20 post the announcement.
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