Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Bharat Forge - Q1FY21 First Cut - ICICI Securities

Posted On: 2020-08-12 09:14:03


(CMP: Rs. 422; MCap: Rs. 19,647 crore)

Bharat Forge (BFL) reported weak performance in Q1FY21, with margin number being below our estimate.

Q1FY21 Earnings Summary

Standalone revenues came in at Rs. 427 crore (down 68.3% YoY, I Direct estimate: Rs. 403 crore), tracking 55.6% YoY decline in volumes to 17,840 MT. Total India revenues stood at Rs. 167.8 crore (down 71.7% YoY; CV down 84.7%, PV down 85.8%, industrial down 51.2%). On the international side, PV revenues de-grew by 52.6% while CV revenues declined 78.9% and industrial revenues fell by 50.7%. Among geographies, the Americas posted 74% revenue decline while the drop was more contained in Europe (down 41%)

Bharat Forge management guided for Q2FY21E domestic revenues being flat YoY, while export revenues are expected to be lower than in the previous year. Domestically, it expects CV demand to contract 30-35% YoY in FY21E, with meaningful recovery seen only in FY22E. US Class 8 truck demand is also expected to remain muted in the near term amid lower economic activity and relatively low age of fleet.

Standalone EBITDA for the quarter stood at negative Rs. 3 crore vs. our expectation of modest Rs. 12 crore profit. Margin performance was likely impacted by inventory adjustment, with gross margins sliding 630 bps QoQ while other expenses declined sequentially on percentage of sales basis.

Reported standalone loss at PAT level stood at Rs. 56.3 crore (I Direct estimate: loss of Rs. 71.4 crore). There was a beat on the profitability front despite miss on margins on account of higher than anticipated other income and lower than anticipated depreciation outgo.

At the consolidated level, the company reported Rs. 1.9 crore as share in loss at subsidiaries/associates, down sharply from loss of Rs. 21.4 crore in the previous quarter - which was a silver lining.

BFL's performance in Q1FY21 was impacted severely by Covid-19 pandemic related lockdowns in domestic as well as global operations. The company, however, continues to focus on lowering breakeven levels in all operations and de-risk business away from CVs. We would be coming out with a detailed report soon.

Shares of BHARAT FORGE LTD. was last trading in BSE at Rs.434.75 as compared to the previous close of Rs. 412.95. The total number of shares traded during the day was 484566 in over 10176 trades.

The stock hit an intraday high of Rs. 442 and intraday low of 407.6. The net turnover during the day was Rs. 207972052.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Zydus Wellness - Leadership in niche categories; initiate at BUY - ICICI Securities

Power - Setting the stage - ICICI Securities

Company Update - Elgi Equipments - ICICI Securities

Nano Nivesh - The Anup Engineering - ICICI Securities

RBI OMO announcement of Rs. 10000 crore - Angel Broking

TCS deal win - Sep 24, 2020 - Angel Broking

View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

US FDA approval to Zydus Cadila - Angel Broking

HDFC Securities Institutional Research Desk: Cement Sector Thematic - Spotting the sweet spot

Bharat Forge - Expectation hurdle remains steep - ICICI Securities

Auto

Mutual Fund Review - September, 2020 - ICICI Securities

UTI AMC announces IPO date - Angel Broking

Asian Paints - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Britannia Industries - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Hexaware Technologies (Not Rated): Hexaware accepts 475/share as final delisting price - ICICI Securities

CAMS IPO - Day 2 Subscription - Angel Boking

Chemcon Speciality Chemicals - IPO subscribed 12.62 times on second day - Angel Broking

General insurance - Fire, health remain growth drivers, rising Covid claims a concern - ICICI Securities

Supreme Industries - Perfect recipe for rerating; upgrade to BUY - ICICI Securities

Titan Company - Best positioned to gain from faster-than-expected recovery. Upgrade to ADD - ICICI Securities

Sector Update - Telecom - Sep 23, 2020 - ICICI Securities

Allcargo Logistics - Highlights of Blackstone deal - ICICI Securities

I-direct Instinct - Gokaldas Exports

Economy: RBI's trilemma: allows for INR strength - Kotak

HCL Technologies - Company Update - ICICI Securities

Chemcon Speciality Chemicals - IPO Review - ICICI Securities

Angel Broking - IPO Note - YES Securities

TCS - Announcement of its blockhchain based solutions on Microsoft Azure - Angel Broking

Amber Enterpirses acquire Sidwal - Angel Broking

Dixon Technologies - Buy - YES Securities

HCL Technologies acquisition of DWS Limited - Angel Broking

Allcargo Logistics CFO Resignation - Angel Broking

Upgrade to BUY on Gateway Distriparks - Strengthening the balance sheet - HDFC Securities

BUY on ITD Cementation - Execution pickup awaited - HDFC Securities

Allcargo Logistics - Trying to stich through an integrated offering - ICICI Securities

Polymer price tracker - Other polymer (ex-PVC) prices too firm up - ICICI Securities

Angel Broking - IPO Review - ICICI Securities

IPO Review - Computer Age Management Services - ICICI Securities

Company Update - EIH Ltd - ICICI Securities

Gladiator Stocks - Godrej Properties - ICICI Securities

Company Update - Dr Reddy's Laboratories - ICICI Securities

Gladiator Stocks: Pharma Thematic - ICICI Securities

Company Update - Housing & Urban Development - ICICI Securities

Covid Recovery Pulse - E-Way bill generation shows recovery signs with auto volumes flat - ICICI Securities

Quant Pick - UltraTech Cement - ICICI Securities

Lupin & Cipla - Positive News - Angel Broking

Sterling and Wilson Solar Ltd - 106.71 MW order win - Angel Broking

Dr. Reddy's Laboratories - Settles Revlimid litigation in US - ICICI Securities

Natco Pharma - Natco to launch first generic Revlimid - ICICI Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019