Shares of Bharat Forge slipped into losses on February 14 after the company posted a decline in net profit for the quarter ended December.
Bharat Forge was trading at Rs 865.55 on the National Stock Exchange, down 2.75 percent from the previous close, at 02.08pm on Tuesday.
The company posted a net profit of Rs 289 crore, down 14.3 percent from Rs 337.30 crore recorded a year back. The decline in net profit was due to an overseas operational loss of Rs 62 crore due to issues related to a ramp-up of Al forgings capacities in Germany and the US, the company said in an exchange filing.
Despite the decline in net profit, it managed to record its best ever performance on the revenue front. The topline surged 22 percent on-year to Rs 1,952 crore in the October-December period.
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The Indian operations secured new business worth around Rs 265 crore across automotive and industrial applications during the period under review. Operational performance also improved as EBIDTA margin expanded 190 basis points to 27.4 percent from 25.5 percent in the year-ago period.
Improvement in EBIDTA margins was driven by better product mix.
"As we look ahead in to Q4, we expect growth momentum to continue across both the domestic and export markets. Aiding the standalone performance, we expect the new verticals to start registering meaningful contribution at a consolidated level and earnings-per-stock accretive in the next financial year (April-March)," Chairman and Managing Director BN Kalyani said in an exchange filing.
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