Bharat Forge, the flagship company of Kalyani Group, is expected to 13 percent year-on-year growth in profit at Rs 197.4 crore for July-September quarter, aided by operational performance. Earnings will be announced on October 29.
According to analysts polled by CNBC-TV18, revenue is seen rising 2.4 percent to Rs 1,166 crore compared to year-ago period. It may be supported by domestic business but slow exports may hurt.
Export revenues may slow down as US non-auto and class 8 truck market slowed down during the quarter. Class 8 truck orders in America fell for 7 consecutive months as on August 2015.
North America is a key market for Bharat forge. About 20 percent of revenue comes from heavy truck sales in North America. Total export revenue in Q1 rose 21 percent, which is expected to slow down in Q2FY16. North America revenue rose 33.3 percent in Q1 Y-o-Y, which is also expected to slow down in Q2.
India business may do well with recovery in domestic medium & heavy commercial vehicle volumes but domestic industrial business weakness may continue.
Shipment tonnage is expected to rise 3 percent Y-o-Y at 54,137 million tonne during July-September quarter compared to 52,560 million tonne in same period last year.
Operating profit may rise 7.8 percent year-on-year to Rs 350 crore and margin may expand 140 basis points to 29.9 percent during the quarter.
The stock lost 6 percent in 2015 and was down 35 percent from 52-week high of 1,363 due to continuous decline in new truck orders in US and slow recovery in domestic industrial business.
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