STOCKS: Bharat Forge Q1 net profit surges 35% on higher sales; Shares jump
Bharat Forge Ltd., a Pune-based forging company, Monday said fiscal first quarter net profit surged 35% on higher sales. Shares of the company jumped.
Net profit rose to Rs 1.95 billion in the three months ended June 30 compared to Rs 1.44 billion in the corresponding period a year ago, Bharat Forge said in statement to the stock exchanges today.
Net sales of the company rose 14.4% to Rs 11.03 billion while other income climbed 19% to Rs 288.3 million in the first quarter.
Revenues from America business reported a 33.3% growth to Rs 4.39 billion while Asia Pacific revenue increased by 44.1% to Rs 482 million but Europe business fell 4.9% to Rs 1.79 billion during the same period last year.
"Looking ahead in to second quarter, we anticipate demand to be higher compared to the same period last year with positive automotive demand while the challenging demand environment in the industrial sector will continue for some more time as the global economies adjust to the lower commodity prices," said B.N. Kalyani, chairman & MD, Bharat Forge.
EBITDA margin of the forging company expanded to 31.8% in the quarter compared to 29.4% in the same period last year.
The company's finance costs fell 33% to Rs 212.9 million in the Apr-Jun quarter.
At 11:05AM, Bharat Forge rose 3.1% to Rs 1,182.40 on the Mumbai stock exchange. The 30-share Sensex index rose 0.26% to 28,185.85.