Bharat Forge plunges 13% as growth concerns lead to profit booking | Market news| Trending Viral hub

Shares of Bharat Forge fell 13 per cent to Rs 1,148.80 on the BSE in intra-day trade on Monday on heavy volumes led by profit booking.

Growth concerns weighed on the stock as management said it expects momentum to moderate in both domestic and export markets across industries in Q4 and FY25.

Average trading volumes on the counter more than doubled, with a combined total of 4.2 million shares changing hands on NSE and BSE till 02:39 pm.

“Our effort will be to outperform the market driven by our diversified business mix,” the company added.

Shares of the casting and forging company have fallen 14 per cent from their 52-week high of Rs 1,330 hit in intraday trade today.

Since April, so far in the 2023-24 financial year, the stock has outperformed the market and is up 73 per cent. .

During the October-December quarter (3QFY24), Bharat Forge delivered a strong performance with standalone sales growing 15.9 per cent year-on-year (YoY) to Rs 2,263 crore driven by 36 per cent growth in national income.

Defense business contributed significantly to revenue growth, while oil and gas sector and agriculture sector witnessed a decline in Q3FY24 compared to Q3FY23, the company said. company.

Earnings before interest, taxes, depreciation and amortization (ebitda) grew 30.9 per cent to Rs 645 crore. Ebitda margins of 28.5 percent expanded 330 basis points from the prior-year quarter.

Improved product mix and higher capacity utilization contributed to superior operating performance. The company’s profit after tax grew 30.6 per cent year-on-year and 9.2 per cent sequentially to Rs 346 crore.

During the quarter, the company won new business worth Rs 550 crore across automotive, industrial, defence, aerospace and foundry (ferrous and aluminum) sectors.

At a consolidated level, revenue grew 15 per cent year-on-year to Rs 3,867 crore and Ebitda grew 56 per cent to Rs 673 crore. Ebitda margins have improved by 450 basis points driven by early signs of recovery in international business.

The commercial vehicle (CV) business in North America continued to be marginally positive. Class 8 construction rates, inventory levels and sales remained stable. European CV performance was subdued as the economic recovery remained uneven, the company said.

First published: February 12, 2024 | 14:55 IS

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