Bharat Forge Ltd’s mounting challenges echo the global impact of the covid-19 pandemic. New orders for US Class 8 trucks hit a 25-year low in April, falling 72% from a year ago.
On top of it, industry experts estimated a double-digit drop in commercial vehicle (CV) sales in 2020 in spite of a dull 2019.
Further, orders from Europe, another key market, are also drying up. On the home turf, the nationwide lockdown brought already dismal CV sales to a standstill in April.
Given that the CV sector accounts for about one-fourth of stand-alone revenue, disappointing sales and bleak outlook for the coming quarters have dampened investor sentiment for Bharat Forge.