India's Force Motors Q4 profit slips on higher costs

Force Motors

26/04/2024 12:07

BENGALURU, April 26 (Reuters) - Indian automaker Force Motors  FORC.NS  on Friday reported a decline in quarterly profit for the
first time in five quarters, hurt by higher costs.
    The company, which also makes engines for BMW  BMWG.DE  and Mercedes  MBGn.DE  cars in India, said its consolidated net profit fell
4.3% to 1.4 billion rupees ($16.80 million) in the quarter ended March 31 from a year earlier. 
    Revenue from operations rose nearly 35% to 20.11 billion rupees.
    
For further earnings highlights, click (Full Story)   
    

    KEY CONTEXT
    Analysts expected the slowdown in industrial activity ahead of the general elections to moderate the demand for commercial vehicles
through the first half of fiscal 2025. Demand is expected to rebound in the second half. 
    Economic growth, favourable government policies and an anticipated good monsoon are expected to fuel demand in the commercial
vehicle sector in FY25, an industry body said earlier this month.
        
    
PEER COMPARISON 
    
    
                              Valuation (next 12         Estimates (next 12 months)          Analysts' sentiment                  
                              months)                                                                                             
                   RIC        PE         EV/EBITDA       Revenue growth %  Profit growth %  Mean       # of          Stock to     Div
                                                                                            rating*    analysts      price        yield
                                                                                                                     target**     (%)
 Force Motors Ltd   FORC.NS   NULL       NaN             NULL              NULL             Null       0             7.30         0.10
 Ashok Leyland      ASOK.NS   16.46      17.26           8.80              15.50            Buy        30            0.88         3.24
 Ltd                                                                                                                              
 Mahindra and       MAHM.NS   22.73      22.45           11.52             8.78             Buy        31            1.06         0.78
 Mahindra Ltd                                                                                                                     
 Tata Motors Ltd    TAMO.NS   14.98      6.38            8.61              27.02            Buy        28            1.03         0.21
 
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

    
JANUARY-MARCH STOCK PERFORMANCE 

    
    
   
    
    -- All data from LSEG

    -- $1 = 83.3429 Indian rupees  
    

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Force Motors Jan-March Performance    https://tmsnrt.rs/44dzzwq
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 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Eileen Soreng)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))