Force Motors reported a set of very good numbers for Q3Fy16 on Friday and the stock price continues to react positively to these numbers even today. The stock, intra day rose 10% to Rs.2834 and is now at Rs.2770 levels.

The company posted a whopping three times surge in net profit at Rs.27 crore and this was on the back of a very good growth in topline – net sales was up 45% (YoY) at Rs.740 crore. EBITDA margin rose 344 bps to 6.38%.

Though YoY performance is so good, QoQ, there is a decline – net sales fell 2% while net profit fell 35% and EBITDA margin showed a 217 bps fall. Sequential comparison does not make sense for automobile companies as seasonally, Q3 and also Q4 are usually better than Q1 and Q2. Thus YoY, given the buying preferences during the season makes more sense and those numbers are very good which is what the market is celebrating.