Bharat Forge shares slip over 14% in trade; here's why

Shares of Bharat Forge slipped over 14 per cent in Monday's trade on BSE. The stock took a heavy beating after the company released its financial results for the quarter ended December 2023 (Q3 FY24), which were below the Street estimates.

Bharat Forge shares settled 14.04 per cent, or Rs 184.6, lower at Rs 1,130.3 apiece on BSE. Meanwhile, its market capitalisation stood at Rs 52,615.58 crore at around the same time.

As per Zee Business research, Pune-based leading forging firm Bharat Forge's shipment tonnage—the carrying capacity of the ship measured in terms of volume or weight—declined quarter-on-quarter (QoQ) by 4.6 per cent. Additionally, export earnings also slipped 5.7 per cent QoQ.

How did Bharat Forge perform in Q3?

On February 12, during market hours, the company reported a net profit of Rs 254 crore against Rs 79 crore logged in the year-ago period. The profit was estimated at Rs 305 crore.

Meanwhile, its revenue stood at Rs 3,866 crore for the quarter under review, compared to Rs 3,353 crore a year ago. The figure was estimated at Rs 4,015 crore. The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the third quarter stood at Rs 697 crore, against the estimate of Rs 685 crore.

The company's margins stood at 18 per cent against the estimate of 17.1 per cent.

Management commentary

"Looking ahead in Q4 and further into FY25, we expect the growth momentum to moderate in both domestic and export markets across industries. Our endeavour will be to outperform the market driven by our diversified business mix,” the company informed through its filing.

Bharat Forge share price: Past performance 

In a year, shares of Bharat Forge have gained over 27 per cent against the Nifty50's rise of over 22 per cent.

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