Stock market news: Balu Forge Industries rises 8 percent after net profit increased several times in the second quarter
The company said in a statement that a notable improvement was reported in working capital days, which improved from 177 days as of March 31, 2023 to 135 days as of September 30, 2023.
Stock market news: Shares of Balu Forge Industries Limited (BFIL) rose today after the company posted a multiple jump in its consolidated net profit to Rs 24 crore during the second quarter ended September 30. The stock was trading at Rs 242 during the afternoon session on BSE while rising over 7 percent. During the day, the stock touched a 52-week high of Rs 267. The stock’s 52-week low is Rs 240.
The company had reported a net profit of Rs 4.82 crore in the July to September quarter of the previous fiscal. Total income rose to Rs 143.32 crore from Rs 67.13 crore in the same quarter last year. Expenses stood at Rs 113.32 crore in the quarter under review, against Rs 59.78 crore a year ago, it said in a regulatory filing on Tuesday.
The company said in a statement that a notable improvement was reported in working capital days, which improved from 177 days as of March 31, 2023 to 135 days as of September 30, 2023.
“This was primarily attributed to concerted efforts to optimize our credit control processes while maintaining healthy customer relationships, which resulted in a reduction in accounts receivable days,” the statement said.
On the capital investment front, Mumbai-based BFIL said it plans to increase its processing capacity by 14,000 tonnes at its newly acquired 13-hectare site in Belgaum, Karnataka, and progress is going well. Operations from this plant are expected to commence from Q4 of FY24, enabling it to produce heavier and more complex crankshafts with better realizations and margins, BFIL said.
The company is also commissioning a precision machining line from the Mercedes Benz Truck Factory, recently acquired in Mannheim, Germany. Crankshafts find applications in sectors such as the maritime and industrial sectors, agriculture and the automotive sector.