Bharat Forge dips on weak Class 8 truck orders

Bharat Forge stock was under pressure on Wednesday as the company registered a sharp decline in Class 8 truck orders in North America.

Class 8 truck orders from North America remained tepid for the third straight month. The orders stood at 15,700 units, down by 66 per cent as against the corresponding month last year. North American orders constitute 15 per cent of Bharat Forge’s turnover. In March 2018, class 8 truck orders stood at 46,248 units. The orders registered a 7 per cent decline on a month-on-month basis.

Bharat Forge’s net sales stood at Rs. 1,692.52 crore for the quarter ended December 2018 as against Rs. 1,390.55 crore in the corresponding quarter last year, registering a growth of 21.72 per cent YoY. The company’s net profit stood at Rs. 309.83 crore in the quarter ended December 2018, up 35.79 per cent as against Rs. 228.17 crore last year. The EBITDA margin witnessed a 238 bps expansion YoY to 33.89 per cent from 31.51 per cent in December 2017.

On Wednesday, Bharat Forge was trading at Rs. 514.1 per share, down 0.04 per cent on the BSE.