Moneycontrol
Last Updated : Nov 07, 2016 04:30 PM IST | Source: Moneycontrol.com

Bharat Forge Q2 net may fall 26%, North America truck sales key

In Q2, EBITDA is likely to be at Rs 255 crore against Rs 321.4 crore while operating profot margins may stand at 27.8 percent versus 28.7 percent year-on-year.

 
 
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Net profit of Bharat Forge may fall 26 percent to Rs 129 crore in July-September quarter from Rs 175 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, the auto company may see revenue growth slipping 18 percent at Rs 917 crore against Rs 1116.8 crore in year-ago period.


In Q2, EBITDA is likely to be at Rs 255 crore against Rs 321.4 crore while operating profot margins may stand at 27.8 percent versus 28.7 percent year-on-year.

What to watch out for
#Given MHCV slowdown in Q2, expect muted growth in domestic business
#Standalone revenues to decline by 18 percent due to steep decline in export revenues
#CV exports, especially slowdown in North America truck sales is key challenge
#North America truck orders slowed down to 13800 units in September versus 18000 in Jan 2016
#32 percent of FY16 topline contributed by CV exports
#Standalone EBITDA margins to decline due to negative operating leverage
#Expect shipment tonnage to decline 6.4 percent YoY to 51062 tons
#Shipment tonnage impacted by inventory destocking in US truck market and continued weakness in export

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First Published on Nov 7, 2016 04:30 pm
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