InvestorQ : What was the reason for Bharat Forge reporting a net loss in the Jun-20 quarter?
prachi Patwardhan made post

What was the reason for Bharat Forge reporting a net loss in the Jun-20 quarter?

Answer
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1 month ago


Auto ancillary major, Bharat Forge, reported net loss of Rs.127.32 crore for the Jun-20 quarter. It had reported net profit of Rs.171.92 crore in the Jun-102 quarter. Bharat Forge also reported 50% fall in total revenues for the Jun-20 quarter at Rs.1154 crore.

The EBITDA loss was Rs.14.1 crore indicating pressure at an operating level for Bharat Forge. However, the company did manage the balance sheet by cutting down its expenses by over 35% on a YOY basis in the Jun-20 quarter.

Clearly, Bharat Forge numbers were hit by the COVID-19 pandemic and the stringent measures adopted by countries across the world. to control the spread. Bharat Forge is a major supplier to Class-8 trucks in the United States.

Any buy or sell decision on Bharat Forge may have to wait as there is little clarity on how automobile demand will pan out and how the Class 8 truck demand in the US will shape up in the coming months. That will hold the key.