Shares of Bharat Forge were up nearly 2 percent intraday at Rs 397.95 on September 18 after the company announced a plan to set work on a unit in North Carolina, US.
India’s largest forging company told CNBC-TV18 that it would start construction by the end of this year and would target to run the facility at full capacity by 2024.
The company also said it would end 2019 with the production of 3 lakh units of Class 8 trucks, but expected a cut of 20 percent in 2020.
On the slowdown in the auto sector, Bharat Forge said it saw a similar situation in 1995 in India.
"The auto industry is known for having periodic downturns. India’s commercial vehicle business is down 30-35 percent and capital goods don't have a relation with festivities," it said.
In the June quarter, Bharat Forge reported 28 percent fall in consolidated profit, dragged down by subdued demand in the domestic market and inventory destocking in export oil & gas business.
Revenue fell 3.55 percent year-on-year to Rs 23,278.56 crore in the quarter and shipment tonnage was down by 8.9 percent to Rs 6,087.4 crore compared to year-ago period.
The stock was quoting at Rs 397.95, up Rs 0.90, or 0.23 percent, on the BSE at 1242 hours.
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