Balkrishna Industries gains after reporting good Q1 result

Balkrishna Industries rose 1.5% to Rs 907.30 at 10:25 IST on BSE after net profit rose 46.64% to Rs 149.05 crore on 1.25% rise in total income to Rs 979.78 crore in Q1 June 2016 over Q1 June 2015.

The result was announced on Saturday, 10 September 2016.

Meanwhile, the BSE Sensex was down 393.83 points, or 1.37%, to 28,403.42.

On BSE, so far 7,367 shares were traded in the counter, compared with an average volume of 16,832 shares in the past one quarter. The stock hit a high of Rs 920 so far during the day, which is a record high for the stock. The stock hit a low of Rs 899 so far during the day. The stock hit a 52-week low of Rs 551.35 on 26 February 2016. The stock had outperformed the market over the past one month till 9 September 2016, gaining 21.73% compared with Sensex's 2.54% gain. The scrip had also outperformed the market in past one quarter, gaining 32.41% as against Sensex's 7.6% gain.

The mid-cap company has an equity capital of Rs 19.33 crore. Face value per share is Rs 2.

Balkrishna Industries has given a volume guidance of 1.6 lakh metric tonne to 1.7 lakh metric tonne for the year ending 31 March 2017 (FY 2017). Earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 28% in Q1 June 2016 compared with 12.8% in Q1 June 2015. For FY 2017, the company has adopted strategy to increase utilization of Bhuj plant gradually, to add new geographies and deepen reach in the existing geographies, increase competitive edge and to repay debt of $92 million.

Balkrishna Industries is a leading manufacturer in the off-highway tire market. It focuses on specialist segments such as agricultural, construction and industrial vehicles as well as earthmoving, port and mining, ATV and gardening applications.

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