Force Motors share price slumps 5% as Q4 profit falls on higher costs

Force Motors share price slumped over 5% on Monday's session after the company reported a drop in its quarterly profit (Q4FY24) for the first time in five quarters, hurt by rising costs. The firm, which also produces engines for Mercedes and BMW vehicles in India, reported that, compared to a year ago, its consolidated net profit for the quarter ended March 31 decreased 4.3% to ₹140 crore. Operating revenue increased by over 35% to ₹2,011 crore. Force Motors share price opened at ₹10,100 apiece on the BSE today. 

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Force Motors share price has slipped in the morning session and is forming a bearish candlestick pattern on the daily chart. Overall,  the trend is positive, but in the near term, we may see some profit booking. Any such dip in the near term is supported by 9,000.

As per news reports, operational level EBITDA increased to ₹278.7 crore in the fourth quarter from ₹120.8 crore in the same period of the previous fiscal year. With a 600 basis point increase year over year, the EBITDA margin stood at 14%.

The board of directors has recommended a dividend of ₹20 per equity share of ₹10 each, for the financial year ended 31st March 2024. 

As per trendlyne data, Force Motors share price has rose 595.69% and outperformed its sector by 523.67% in the past year.

Force Motors Ltd is a completely vertically integrated automotive corporation with experience in the design, development, and production of the whole range of automotive components, aggregates, and automobiles, according to information available on Trendlyne data. 

Light commercial vehicles (LCV), small commercial vehicles (SCV), sports utility vehicles (SUV), and agricultural tractors are among its product categories. Force Motors is a division of Jaya Hind Investments Private Limited, the company's promoter, which has a 57.38% share.

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