Balkrishna Ind drops 5% post weak Q1 result; declares dividend of Rs 3/sh

Balkrishna Industries shares skid 5.2 per cent to Rs 1,312 apiece on the BSE on Friday after the company's consolidated June quarter profit declined by 25.61 per cent to Rs 131.56 crore. In comparison, it had reported a profit of Rs 176.84 crore in the year-ago period. 

Besides, its consolidated net revenue stood at Rs 942.61 crore, down 21.38 per cent on a yearly basis, from Rs 1,198.93 crore in Q1FY20. EBITDA came in at Rs 240.43 crore in Q1FY21, registering a de-growth of 10.3 per cent YoY from Rs 268.04 crore reported last year. EBITDA margin, on the other hand, improved to 25.51 per cent up 3.15 per cent YoY.

Consolidated profit before tax (PBT) fell 32.5 per cent to Rs 172.27 crore, as against Rs 255.15 crore in Q1FY19. Current tax expense for the quarter tanked 57.8 per cent to Rs 40.78 crore as against Rs 96.70 crore in Q1FY19.

The company said that Q1 FY21 has been a good quarter inspite of the impact of Covid-19. "The pick up in sales volumes in May and June led to a total sales volume of 38,096 MT in Q1 FY21," it said.

"The monthly run rate is gaining momentum and is very visible in July 2020 and August 2020. The demand is strong in agriculture segment across geographies reinforcing the belief on the potential of this segment as well as the brand positioning of the company is continuously helping the firm to gain market share. The non-agriculture segment is moving slow, on-account of low commodity prices and end user demand however, the company expects gradual uptick as economic activity increases across the globe," it added.

The board has declared first interim dividend of Rs 3 per equity share (150 per cent) for the financial year 2020-2021.

At 1:21 pm, the stock was quoting 4 per cent lower at Rs 1,330 per share. In comparison, the S&P BSE Sensex was at 38,362 level, up 0.15 per cent.