Balkrishna Industries Q3 PAT up 2% YoY

Balkrishna Industries reported 2% rise in net profit to Rs 329 crore on a 39% increase in total income to Rs 2,079 crore in Q3 FY22 over Q3 FY21.

Raw Material costs zoomed 58% to Rs 1,015 crore in Q3 FY22 from Rs 642 crore in Q3 FY21.

EBITDA in Q3 FY22 was Rs 507 crore, up 6% YoY. EBITDA margin was 24.4% in Q3 FY22 as against 31.9% in Q3 FY21.

"EBITDA margin was impacted on account of higher Raw Material costs, increased power and fuel costs and marketing spends, the company said in a statement.

The company's management said that across geographies, it continued to see strong demand for its products. The macro challenges continue to be in terms of raw material costs and logistics cost along with the availability of containers. Higher marketing spends and power & fuels expenses impacted profitability in Q3 FY22. The company continues to maintain 28-30% EBITDA margin on a long-term sustainable basis. All capex plans are on-track and the company expects to take benefit of this strong demand via the capacity additions at Waluj and Bhuj plants. Sales Volume guidance for FY22 stands at 275,000 - 285,000 MT.

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

The scrip shed 0.34% to currently trade at Rs 2080.40 on the BSE.

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