Balkrishna Inds gains after Q2 PAT rises 7% YoY to Rs 404 cr

Balkrishna Industries rallied 4.73% to Rs 1,965 after the company's standalone net profit rose 7% to Rs 404 crore on 31.9% jump in revenue from operations to Rs 2,704 crore in Q2 FY23 over Q2 FY22.

Profit before tax dropped 2% to Rs 532 crore in Q2 FY23 as compared to Rs 543 crore in Q2 FY22.

EBITDA stood flat YoY at Rs 564 crore in Q2 FY23. EBITDA margin was at 20.1% in Q2 FY23 as against 27.1% in Q2 FY22.

Total expense spiked 46.21% YoY to Rs 2,398.12 crore in Q2 FY23. Raw material cost stood at Rs 1,233 crore (up 24.04% YoY) and employee expenses stood at Rs 102 crore (up 3.03% YoY). Finance cost surged 138.12% to Rs 4.31 crore during the period under review.

Net cash generated from operating activities stood at Rs 454.26 crore in six months ended 30 September 2022 compared with Rs 478.29 crore in six months ended September 2021.

Meanwhile, the board has declared 2nd interim dividend of Rs 4 per share for the financial year 2022-23. The record date is fixed on 22 November 2022.

The company's consolidated net profit declined 2.24% to Rs 382.26 crore on 28.24% decrease in revenue from operations to Rs 2,657.52 crore in Q2 FY23 over Q2 FY22.

The company management said, "Looking at the current geo-political challenges across the globe especially in Europe, which is also our biggest market, there are strong headwinds. Despite these challenges during the quarter, the Company could deliver a good performance and registered sales volumes of 78,872 MT. The recent price correction in raw materials and logistics costs bode well for our margin profile. However, as guided the benefits are expected to kick in from early Q4. During this challenging macro environment, we are unable to guide for annual sales volumes for FY23."

Balkrishna Industries is engaged in the business of manufacturing and selling of Off-Highway Tyres (OHT) in the specialist segments such as Agricultural, Industrial & Construction, Earthmovers & Port, Mining, Forestry, Lawn & Garden and All Terrain Vehicles (ATV).

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