Bharat Forge buckles under heightened challenges across business segments in Q3
On the back of a steep decline in December quarter profits, Kalyani-group’s flagship company Bharat Forge Ltd painted a dismal outlook.
The stock that has been volatile through the last two quarters fell 2.3% on Tuesday. After all, a 60% and 81% YoY drop in reported net profit (Q3FY20) at the standalone and consolidated level respectively are not palatable for the investor.
Clearly, uncertainty over demand uptick in global and domestic commercial and passenger vehicle sales is taking a toll on the global forgings company. This, along with trade tensions that are impacting demand in non-auto businesses, poses a risk to its near-term earnings growth.
