Force Motors shares hit 5% lower circuit; here's why

Force Motors shares hit a 5 per cent lower circuit on BSE in the early trade on Wednesday, December 6, a day after the company released its November business update.

At around 9:59 a.m., shares of Force Motors were down 5 per cent or Rs 208.35, at Rs 3,959.35 apiece, extending losses for the second straight session. The market capitalisation of the company stood at Rs 5,160.18 crore at around the same time.

In its November business update, the Pune-based automobile company posted a total production of 2,216 units against 2,073 units in the year-ago period. While the total production increased YoY, it declined month-on-month (MoM). In the previous month, production stood at 2,852 units.

Similarly, total domestic sales increased by 6.7 per cent YoY to 1,732 units from 1,623 units but slipped MoM by 23.2 per cent from 2,254 units in October.

Meanwhile, total sales exports for the company in November stood at 339 units, up from 329 units a year ago. In October, the total exported units stood at 450, according to the filing. 

Force Motors Q2 

The automobile company posted a net profit of Rs 93.89 crore in the quarter ending September 30, 2023, against Rs 19.28 crore recorded a year ago.

The company's revenue from operations stood at Rs 1801.68 crore, against Rs 126.4 crore in the corresponding quarter of the previous year. The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 225 crore against Rs 99 crore year-on-year (YoY).

The company's margins stood at 12.5 per cent in the three-month period ending September, up from 8 per cent a year ago.

Force Motors share price: Past performance

In 2023 so far, shares of Force Motors have gained over 170 per cent, outperforming the headline index Nifty50's rise of over 14 per cent.

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