Shares of Force Motors (FML) gained 4 per cent to hit a new high of Rs 1,974 in Tuesday’s intra-day trade, after the company reported 30 per cent year-on-year (YoY) and month-on-month (MoM) jump in total sales at 2,645 units in May month.
In the year-ago period, the company had sold a total of 2,026 units, whereas last month, it had sold total of 2,042 units, the company said.
The company’s exports sales nearly-doubled on a MoM basis at 491 units in May month, against 166 units sold in export market during last month. On YoY basis, export sales grew 54.8 per cent from 317 units sold in May 2022. The company’s domestic sales were up 14.8 per cent MoM and 26 per cent YoY at 2,154 units.
Tata Motors Q3 preview: What to expect from auto major's quarterly results?
Bajaj Auto sales jump 7% to 331,278 units in April, exports fall 43%
Tata Motors: Solid volumes, ASP may aid Q4 profit, margin expansion
No near-term boost likely for auto stocks from Expo 2023, say analysts
CNG cars could account for 25% of industry by end of decade: Tata Motors MD
NSE to shift Nifty Bank F&O expiry day to Friday, weeks after BSE
Capacite Infra surges 51% in 1 month on improved operational performance
Cement shares in focus; UltraTech hits 52-week high, Ambuja surges 4%
Mazagaon Dock extends rally to 8th straight day; zooms 27% in two days
Stocks to Watch today, June 6: Adani Group, SBI, Maruti, HUL, Sejal Glass
FML is a flagship company of the Abhay Firodia group. The company is fully vertically integrated manufacturer of small and light commercial vehicles (LCVs), multi-utility vehicles, and agricultural tractors.
Under the auto components division, engines are assembled for Mercedes-Benz India and BMW India. The primary brands in LCVs and multiutility vehicles include Traveller, Trax, Gurkha and Shaktiman, while the brands in tractors are Balwan, Orchard, Abhiman and Sanman.
Meanwhile, in the past seven trading days, the stock price of FML has zoomed 41 per cent after the company reported robust earnings during the March quarter of FY23.
FML's consolidated net profit came in at Rs 146.62 crore, as against a net loss of Rs 42.77 crore, which it had posted in the year-ago quarter (Q4FY22), and loss of Rs 15.57 crore in the previous quarter (Q3FY23).
The company reported net exceptional income of Rs 208.32 crore during the quarter. This included exceptional income of Rs 308 crore as part of Madhya Pradesh state government's Industrial Investment Promotion Assistance Scheme, 2010, recognised on the basis of sanction orders received on March, 2023 for the years 2017-18 to 2020-21.
In Q4FY23, Force Motors' revenue from operations grew 69 per cent to Rs 1,490 crore from Rs 881 crore in Q4FY22.
Operating margins during the quarter stood at 10.65 per cent as compared to 0.86 per cent in the year ago quarter, due to price hikes taken despite cool off in key raw material prices like steel.