Bharat Forge on a strong run

Bharat Forge is on a strong run today morning. Opening higher at Rs.722, the stock is currently at its intra day high point of Rs.736.90, a new 52-week high.

The stock is climbing new highs on the back of its very good performance reported for Q1FY15. On a 25% (YoY) rise in total sales at Rs.988 crore, the company clocked a 60% jump in its net profit at Rs.145 crore. Operating expenses rose 17% and it ended the quarter with an EBITDA of Rs.291 crore, up 48% with EBITDA margins showing a major improvement – up from 24.8% to 29.4%.  The company has stated that improvement in sales improvement plus favourable product mix resulted in improvement in and robust cash flow.

Exports continue to remain the mainstay of the company  as this robust growth in sales was led by a 76% growth in exports to North America, with a 10% rise in domestic revenue. Currently, exports constitute 55% of the company’s total revenue earned. The company expects Q2 to be equally good, with once again exports to lead growth. Domestic revenue growth is estimated to pick up from H2. It expects to double its revenue by FY18.