World's largest forging company Bharat Forge's earnings may be subdued in the quarter ended December 2016, following weak performance in previous quarter.
Consolidated profit during the quarter is seen falling 19 percent year-on-year to Rs 137 crore and revenue may decline 9.5 percent to Rs 951.7 crore, according to average of estimates of analysts polled by CNBC-TV18.
Weak performance in export markets is expected hit revenue. Even the company had indicated last quarter that export revenues especially in autos will continue to be sluggish.
Headwinds are also expected to continue in domestic commercial vehicle market. Freight demand in commercial vehicle was very weak in the initial phase of demonetisation.
Operating profit may fall 15 percent year-on-year to Rs 270 crore and margin may shrink 180 basis points to 28.4 percent in the quarter gone by.
The stock rallied in January on account of some recovery in North America truck sales. Also the company commentary in mid quarter was positive, saying second half of FY17 will be better than first half.
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