Shares of Balu Forge Industries Ltd. hit a two-year high after its profit jumped nearly fourfold in the second quarter.
The company's consolidated net profit surged 385.41% year-on-year to Rs 23.3 crore in the September quarter, according to an exchange filing. Revenue rose 129.70% to Rs 139.2 crore during the period.
The company expects its revenue to grow conservatively by 25% in FY24 over FY23, led by growth opportunities in various industries like defence, railways, and others, it said in the filing.
"In this quarter, we achieved our highest-ever revenue. This growth can be attributed to our expanded product portfolio, including the introduction of heavy-duty crankshafts, as well as increased demand for our products across a wide range of industries, such as automotive, locomotives, defence, oil and gas, railway, marine, prototypes, and more," said the company's management in its press release.
Balu Forge Industries Ltd. is engaged in the manufacturing of finished and semi-finished crankshafts and forged components and has a clientele comprising of 25+ OEM's.
Balu Forge Industries Q2 FY24 (Consolidated, YoY)
Revenue up 129.70% to Rs 139.2 crore.
Ebitda up 720.4% to Rs 30.1 crore.
Margin at 21.6% vs. 6.1%
Net profit up 385.41% at Rs 23.3 crore.
Shares of the company surged 18.46% to hit Rs 267 apiece, the highest level since Oct. 18, 2021. It pared gains to trade 8.65% higher at Rs 244.90 apiece, as of 9:57 a.m. This compares to a 0.29% decline in the S&P BSE Sensex Index.
It has fallen 282% on a year-to-date basis. Total traded volume so far in the day stood at 33 times its 30-day average. The relative strength index was at 68.
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