Balkrishna Industries' consolidated net profit rose 48.2% to Rs 223.80 crore in Q3 December 2019 (Q3 FY20) from Rs 150.98 crore reported in Q3 December 2018 (Q3 FY19).
Net sales declined 3.5% to Rs 1155.76 crore in Q3 FY20 from Rs 1197.84 crore in Q3 FY19. Profit before tax (PBT) stood at Rs 278.27 crore in Q3 FY20, up by 25.1% from Rs 222.43 crore in Q3 FY19. The result was announced after market hours yesterday.
On a standalone basis, net profit rose 52.51% to Rs 220.68 crore on 3.74% decline in net sales to Rs 1,160.50 crore in Q3 FY20 over Q3 FY19. PBT rose 26.94% to Rs 274.83 crore during the period under review.
EBITDA rose 22% to Rs 369 crore in Q3 FY20 from Rs 303 crore in Q3 FY19. EBITDA margin stood at 31.2% in Q3 FY20 as compared to 25.3% in Q3 FY19.
The company said that the markets continue to remain challenging. However, with improving global macro-economic situation and expectation of better weather conditions and therefore the firm's business may see better growth in FY21 compared to the current year.
During last quarter, the company had guided for a better volume performance in H2FY20 over H1FY20, and we remain confident on the same. The company expects to end FY20 with minor de-growth on sales volumes.
With the company's growing focus on improving its product portfolio, consistent product quality, efficient service levels, and better brand recognition with end customers, the company believes that it will continue to gain market share across segments in the years to come.
Shares of Balkrishna Industries rose 0.68% to end at Rs 1157.05 on Friday.
Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.
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