Bharat Forge rose 1% to Rs 520.55 after preliminary North American Class 8 net orders jumped to 52,600 units in November 2020.
According to data from FTR Transportation Intelligence, preliminary North American Class 8 net orders exploded in November to the third-highest total ever at 52,600 units. December 2020 Class 8 order activity was the best performance since August 2018.
Orders had risen 31% sequentially and have surged by almost three times the level of November 2019. Class 8 orders for the past twelve months continue to increase and now stand at 250,000 units.
The tremendous volume reflects several large fleets placing their requirement orders for the entirety of 2021 to lock up build slots, which they perceive could be in short supply next year. Fleet confidence remains solid entering 2021, as carriers are getting their truck orders in early for next year's deliveries.
Orders should begin to wind down in the next several months as the large fleets conclude their seasonal ordering.
Don Ake, vice president of commercial vehicles for FTR commented, "The Class 8 market is trying to rebalance after suffering through woeful order numbers early in the pandemic. Fleets are still trying to catch-up with the jump in freight volumes resulting from the economic restart and the generous stimulus money which is being spent predominately on consumer goods and food. This will only intensify if there is a second round of payouts."
Bharat Forge is a multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine, defense and aerospace industries. It earns notable revenues from Class 8 trucks in the US market.
The company reported a consolidated net loss of Rs 1.32 crore in Q2 FY21 compared with net profit of Rs 205.48 crore in Q2 FY20. Net sales during the quarter declined by 36.2% year-on-year (YoY) to Rs 1376.09 crore.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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