Mumbai: Bharat Forge Ltd on Friday said its net profit for the June quarter fell 37.72% from a year ago due to lower total revenues.
Net profit fell to Rs.122.06 crore from Rs.195.97 crore a year ago. According to 17 Bloomberg analysts, the company had been expected to post a net profit of Rs.156.40 crore.
Revenue for the quarter fell 19.31% to Rs.957.03 crore from Rs.1,186.06 crore a year ago. Domestic revenue rose 10.8%, but it was negated by a 40% fall in exports mainly because of a declining US heavy truck market.
“We have had a very challenging quarter largely because of continuing weak demand and inventory destocking in the commodities space, especially in the oil & gas space. This coupled with the severe downturn in the North America truck market has resulted in a weak performance in June quarter,” said B.N. Kalyani, chairman and managing director.
Earnings before interest, taxes, depreciation and amortization (Ebitda) fell 31.3% to Rs.253.70 crore as compared to Rs.369.20 crore a year ago. The Ebitda margin fell 460 basis points to 26.5% from 31.1% last year in the same quarter.
“For the September quarter, we anticipate demand to be slightly higher compared to the June quarter, 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 global economics adjusts to lower commodity prices,” Kalyani added.
Shares of Bharat Forge closed 12.51% higher at Rs.814 apiece on BSE, while India’s benchmark Sensex rose 1.31% to 28,078.35 points.