Short term outlook for market remains negative, says Sharekhan's Devang Shah

Force Motors has rallied 9% to Rs 2,805 on the BSE after the company reported nearly three-fold jump in net profit at Rs 27.44 crore for the third quarter ended December 2015 (Q3FY16) on back of strong operational income. The automobile company had recorded a profit of Rs 9.99 crore in the same quarter last year.

Net sales of the company during the quarter under review increased by 45% to Rs 740 crore against Rs 512 crore in the corresponding quarter of previous fiscal.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA) margin stood at 6.38% expanded by 344 basis points (bps) year on year but contracted 217 bps on sequential basis.

Force Motors posted profit of Rs 42 crore on revenues of Rs 756 crore in September 2015 quarter.

The stock hit a high of Rs 2,834 on the BSE in early morning trade. The counter has seen huge trading volumes with 113,000 shares changed hands in first half-an-hour of trading against an average 116,000 shares that were traded daily in past two weeks on the BSE.