Bharat Forge's Q4FY16 standalone net profit declines 19% yoy to Rs.164.52 crore : Misses Estimates

India Infoline News Service | Mumbai | May 17, 2016 13:50 IST

The company’s standalone revenue stood at Rs. 1,008.03 crore, down 17.64% yoy and 4.18% qoq.

Bharat Forge
Bharat Forge, Pune-based Indian multinational manufacturing auto-component solutions, reported standalone net profit of Rs.164.52 crore for the quarter ended March 31, 2016, registering decline of 19.03% yoy and 0.99% qoq. The company’s standalone revenue stood at Rs. 1,008.03 crore, down 17.64% yoy and 4.18% qoq.

Its standalone core operating profit of Rs. 298.21 crore for the quarter, declined by 17.09% yoy and 6% qoq. Operating profit margin for the current quarter at 29.58% expanded by 19 bps yoy but contracted by 58 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 701.06 crore, declining by 2.49% yoy. Its standalone revenue for the period stood at Rs. 4,305.41 crore, registering decline of 5.34% yoy.

Bharat Forge's core operating profit stood at Rs. 1,283.02 crore, recording decline of 3.53% yoy. Operating margin for the current period at 29.76% expanded by 52 bps yoy.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 652.49 crore, declining by 14.87% yoy. Its standalone revenue for the period stood at Rs. 7646.53crore, registering growth of 0.31% yoy.

Bharat Forge Ltd's core operating profit stood at Rs. 1,441.22 crore, recording marginal growth of 0.03% yoy. Operating margin for the current period at 18.84%.


Bharat Forge (Q4 FY16– Weak on revenues, Margins strong:

Bharat Forge’s standalone net revenues were at Rs. 1,008 crore, lower than IIFL expectations. Sales were lower by 17.6% yoy and 4.2% qoq. While volumes were lower by 7.5% on yoy basis, realizations were down 10.9% yoy. The company’s domestic revenues were flat on yoy basis, export revenues slumped 28.7% yoy mainly on the back of 42% yoy nosedive in US revenues. Europe revenues were higher by 8.5% yoy. Its OPM was at 29.6% which was higher by 19bps yoy but declined 58bps qoq. Margins were higher than our estimates. Gross margins remained strong but operating deleverage caused had an offsetting impact. PAT at Rs. 165 crore was tad lower than IIFL estimates of Rs. 169 crore. PAT was lower by 19% yoy and 1% qoq.

Result Highlights: (Rs. in crore)
Reported Results IIFL Estimates Variance (%)
Standalone Revenue 1008.03 1089 [7.44]
Standalone Net Profit 164.52 169 [2.65]

Bloomberg estimated the company’s standalone net profit at Rs. 182.11 crore.

Corporate Action: Bharat Forge at its meeting held on May 17, 2016, inter alia, has recommended a final dividend of Rs. 0.50 per equity share of Rs. 2/- each (25%) for the year ended March 31, 2016, subject to the approval of the Members of the Company.

Stock Commentary:

Bharat Forge Ltd is currently trading at Rs. 751, down by 3.65 points or 0.48% from its previous closing of Rs. 754.65 on the BSE.

The scrip opened at Rs. 758 and has touched a high and low of Rs. 760.5 and Rs. 739 respectively. So far 2287454(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 17568.25 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1332 on 20-May-2015 and a 52 week low of Rs. 720.65 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 795 and Rs. 749 respectively.

The promoters holding in the company stood at 46.74 % while Institutions and Non-Institutions held 32.53 % and 20.72 % respectively.

The stock is currently trading above its 200 DMA.



***Note: This is a NSE Chart

 

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