Bharat Forge shares soared over 12 per cent on Friday despite the company posted 37.71 per cent fall in net profit at Rs 122.06 crore for the first quarter ended June 30, 2016 against Rs 195.97 crore in the corresponding quarter a year ago. Total income of the company decreased by 19.19 per cent year-on-year to Rs 982.67 crore for the quarter under review, from Rs 1,215.97 crore in the same quarter last year.
At 10.42 am, shares of the company were trading 4.63 per cent up at Rs 757. The scrip opened the day at Rs 724 and has touched a high and low of Rs 758.70 and Rs 719, respectively, in trade so far. Later, the scrip closed 12.51 per cent up at Rs 814.
Export revenue of the company fell by 40 per cent year-on-year to Rs 407.90 crore in April-June 2016 period against Rs 679.50 crore in the same quarter last year. EBIDTA of Bharat Forge declined by 31.30 per cent to Rs 253.70 crore for the quarter ended June 30, 2016 against Rs 369.20 crore in the same quarter last year.
Total expenditure of the company fell to Rs 786.58 crore in the latest quarter ended June 30, 2016 from Rs 904.33 crore in the same quarter last fiscal.
In the past one year, shares of the company slid 38.57 per cent to Rs 723.50 on August 4, 2016 from Rs 1177.85 crore on August 4, 2015.
BN Kalyani, chairman and managing director, Bharat Forge in a release said, “Although FY17 is a sluggish year in terms of sales development, we believe that the phase of sequential sales decline is behind us. Looking ahead in to Q2, we anticipate demand to be slightly higher compared to Q1FY17 with positive demand in India across automotive and industrial, while the challenging demand environment in the export Industrial sector will continue for some more time as the global economies adjust to the lower commodity prices.”