Bharat Forge strides ahead
At one point during the day, Bharat Forge surged almost 5% higher at Rs.1199 on the back of its very encouraging numbers for Q1FY16. It has since then come off those levels and is now ruling around Rs.1173 levels, up around 3%.
The stock is in the limelight after it reported its earnings for the first quarter ended 30th June 2015 today morning. It posted a 35% (YoY) rise in net profit at Rs.195 crore on a 14% increase in revenue at Rs.1128 crore. The performance was led mainly by a 21% rise in exports. EBITDA margins expanded 240 bps at 31.8%. Shipment tonnage increased by 6%. In terms of geography, Asia Pacific showed the best growth at 44%, Americas grew 33% while Europe was down 5%. Domestic revenue rose 6%.
The company expects Q2 to be much better than Q1 as it expects demand in auto sector to grow though global challenges could temper in the numbers.