Street positive on prospects of Balkrishna Industries despite headwinds

After guiding for 3-5% volume growth at the beginning of FY20, the company has now revised its guidance to a marginal decline

The Balkrishna Industries stock has shed close to 3 per cent since its September quarter results, on account of weak numbers and downward revision of growth guidance. 

The company, which makes ‘off highway tyres’ (OHT), reported a 19 per cent decline in revenues, which was almost twice the level estimated by analysts. While volumes were down 13 per cent, average selling prices, too, contributed to the decline as they fell 6 per cent.

Further, the firm indicated that it faced headwinds, especially in tyre sales to the agricultural sector, given the weak demand conditions in Europe as