The company reported a superb set of numbers for Q3FY14 but only on YoY. It’s net profit rose 98% at Rs.94 core though QoQ, it was down 2.5%. Total revenue was at Rs.832 crore, up 24% (YoY) down 1.5% (QoQ). The best part is the EBITDA margin; it came in at 25.8% v/s 20.6% in Q3FY14 though a tad lower than 26.4% for Q2FY14. The Yoy performance was driven mainly by a 54% jump in export revenues. The commercial vehicle segment in both North America and Europe ended the year on a good note with demand conditions improving driven by economic recovery in North America and pre buy in Europe. Its Q3 shipment tonnage at 42,702 tons was flat compared to the previous quarter while it increased by about 14% compared to Q3 FY13 despite the domestic CV market witnessing the worst quarter in the last 2 years.

The company, through its indirect subsidiary in Hong Kong divested 51.85% stake in its Chinese JV operations (FAW Bharat Forge (Changchun) Company Limited) to its Joint Venture partner, China FAW Corporation Limited, for Rs.175 crore, thereby ending its 8 year old JV in China. The company looking ahead, has stated that replacement of aging trucks continues to be the primary driver of new purchases in North America while demand in Europe is expected to be slightly better than CY2013 although Q1 CY14 (Q4FY14) may witness softness on account of pre-buy in CY13.