MM Forgings slumps on flat Q1

MM Forgings announced its Q1FY16 yesterday after market hours and the muted performance led to the stock opening in the red today. The stock is currently down almost 5% at Rs.661 levels and this is after the stock hitting an intra day low of Rs.645.

MM Forgings, is a Tamil Nadu based company and its numbers for the first quarter were very flat. Net sales were at Rs.121.59 crore v/s Rs.121.30 crore (YoY). Total expenses also came at Rs.106 crore. The only difference was the higher other income – in current Q1 it came in at Rs.1.15 crore v/s Rs.40 lakh in previous Q1. There was also an additional charge of deferred tax in current Q1 of Rs.25 lakh and that changed the bottomline slightly – net profit was at Rs.12.92 crore v/s Rs.13.24 crore, a fall of around 2.5%. Thus a lackluster Q1 but things seasonally get better from Q2, lets see how that fares in coming months.