Shares of Bharat Forge Ltd. surged to a fresh high as net profit matched analyst estimates in the second quarter of the financial year 2017-18.
Net profit of the country's biggest forging company jumped 61.1 percent year-on-year to Rs 204 crore for the three months ended September, according to its exchange filing. This was marginally higher than the Rs 200 crore estimated by analysts tracked by Bloomberg.
Revenue increased 41.3 percent year-on-year to Rs 1,258 crore. The top line also met the Bloomberg consensus estimate of Rs 1,250 crore.
Operating performance improved as earnings before interest, tax, depreciation and amortisation more than doubled to Rs 370 crore from Rs 146 crore in the year-ago period. Operating margin expanded 176 basis points to 29.4 percent.
The company also declared an interim dividend at the rate of 100 percent on fully paid equity shares of Rs 2 each. The board of Bharat Forge also approved a bonus issue of shares in the ratio of 1:1.
Shares rose more than 2 percent to a lifetime high of Rs 729.95 apiece in intraday trade after the earnings announcement.
Watch the full interview with Amit Kalyani, executive director at Bharat Forge.
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