Balkrishna Inds spurts after Q4 PAT rises 42% to Rs 264 cr

Balkrishna Industries jumped 4.12% to Rs 1257.35 on BSE after the company reported a 42.3% rise in consolidated net profit to Rs 264.70 crore on 1.2% rise in revenue from operations to Rs 1372.27 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) stood at Rs 346.31 crore in Q4 March 2020, rising 24.5% from Rs 278.02 crore in the same period last year. Total tax expense fell 11.3% to Rs 81.61 crore in Q4 March 2020 over Q4 March 2019. The company received a deferred tax rebate of Rs 11.18 crore in Q4 March 2020.

The stock was in demand after positive management commentary and a robust outlook. The management said, During February 2020, we had indicated that we should be able to cross 2,00,000 MT sales volume for FY20. We have crossed this benchmark and have achieved the sales volume of 201,760 MT for FY20. This is despite shutdown of manufacturing operations and dispatches across all our plants from 25th March 2020 due to lockdown on account of COVID-19. After resumption of manufacturing activities and dispatches in later part of April 2020, we were gradually able to ramp up our activities and have gradually gained normalcy in our manufacturing activities as well as dispatches to a large extent. If everything remains what it is, as of today, performance for FY21 should be at similar levels, of what has been achieved during FY20."

On a standalone basis, Balkrishna Industries' standalone net profit rose 39% to Rs 257.30 crore on a 0.5% rise in net sales to Rs 1357.32 crore in Q4 March 2020 over Q4 March 2019. EBITDA jumped 21% to Rs 407 crore in Q4 March 2020, from Rs 336 crore posted in Q4 March 2019. EBITDA margin improved to 29.3% in Q4 March 2020 from 24.8% in Q4 March 2019.

"The second phase of carbon black project of 80,000 MTPA was commissioned on 12 March 2020. The green field tyre project and other capital expenditure at Bhuj plant of the company were temporarily suspended due to Covid-19 pandemic, which were resumed after lockdown was lifted. The company assured that it is trying to complete all these projects as per schedule before 31 March 2021 but could be delayed by one quarter provided there is no further lockdown or any unforeseen circumstances," the company stated.

Balkrishna Industries is a tyre manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.

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