Bharat Forge slumps on export fall

Bharat Forge, during the morning session was amongst the top losers on the BSE, down 3% at Rs.747.85. It has recovered since then but remains firmly in the red, down 2% at Rs.753 levels.

The company sales of Class 8 trucks, which is mainly exported to USA has been on a consistent decline, hitting new lows month-after-month. For the month of June too, the news is not good with orders falling 34% on a YoY and down 8% on MoM.

With orders coming in at 13,000 units, this is the lowest monthly order since 2012.

Morgan Stanley had put out a report wherein it has stated that though the company is well poised for a good run in the Indian markets, with benefits to come from capacity expansions, its export slowdown could offset these gains in current FY17. It expects exports to recover only in FY18.