Tag: Balkrishna Industries

Income Tax dept conducts searches at Balkrishna Industries premises, say sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Income Tax department conducted searches at the premises of tyre manufacturing company Balkrishna Industries, sources told CNBC-TV18 on March 11.

More details are awaited.

Following the development, shares of the Mumbai-based firm traded 1.45% lower at ₹2233.55 on BSE at 12:54 pm.

(Check back for details shortly)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries shares drop over 7% despite strong growth in Q3 net profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Balkrishna Industries Ltd shares dropped more than 7% on Thursday, January 25, despite the company reporting a robust growth in net profit for the December quarter.

In its third quarter earnings results released after market hours on Wednesday, the leading tyre producer reported a single digit growth in revenue from operations. The company’s revenue from operations increased 5% on a year-on-year (YoY) basis to ₹2,274.4 crore for the quarter ended on December 31, 2023, compared to ₹2,165.6 crore in the same period a year ago.

The off-highway tyre major’s sales volume also showed a decent increase in the December-ended quarter, rising 9% from last year to 72,749 MT, recovering in the third quarter of this fiscal. The figure is still down 8% from last year for the nine months ended December 31, 2023 at 2,10,000 MT.

The company’s net profit, witnessed a 181.71% growth in the December to ₹305.4 crore as opposed to a net profit of ₹108.4 crore in the corresponding period of the preceding fiscal, as per the company’s stock exchange filing.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 101% to ₹540.6 crore in the third quarter of this fiscal compared to ₹269.3 crore in the same period a year ago.

The EBITDA margin too jumped to 23.8% in the reporting quarter, in comparison to 12.4% reported in the same quarter last fiscal.

Further, Balkrishna Industries’ board also declared a third interim dividend of ₹4 per equity share or 200% on shares having a face value of ₹2 each for FY24, with the record date set as February 2, 2024.

Shares of Balkrishna Industries were trading 6.9% lower at ₹2,523.9 per piece on BSE at 12:25 pm.

Also Read: HPCL Q3 Results: Shares fall 7% after profit, revenue miss expectations

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries Q3 Results | Net profit spikes 182% to ₹305 crore, declares dividend of ₹4 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Off-highway tyre major Balkrishna Industries Ltd (BKT) on Wednesday (January 24) reported a 181.71% year-on-year (YoY) jump in net profit at ₹305.4 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Balkrishna Industries posted a net profit of ₹108.4 crore, the company said in a regulatory filing. The company’s revenue from operations increased 5% to ₹2,274.4 crore as against ₹2,165.6 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA stood at ₹540.6 crore in the third quarter of this fiscal over ₹269.3 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 23.8% in the reporting quarter as compared to 12.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The board has declared 3rd interim dividend of ₹4.00 per equity share (200%) on the equity shares of ₹2 each (face value) for the financial year 2023-24. The payment shall be credited/dispatched within 30 days from the date of declaration as per applicable provisions of the Companies Act, 2013, to such shareholders as on record date i.e. February 2, 2024.

The results came after the close of the market hours. Shares of Balkrishna Industries Ltd ended at ₹2,709.50, up by ₹88.30, or 3.37% on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Morgan Stanley ‘underweight’ on Balkrishna Industries over dip in volumes, challenging export outlook

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brokerage house Morgan Stanley has given an “underweight” call on Balkrishna Industries share price with a target price of Rs 1,928 apiece, citing the challenging export outlook of the company and the expected decline in volume. The target price for Balkrishna Industries implies a potential downside of 23% from the current market price.

In their research note, analysts at Morgan Stanley said that the company’s export outlook remains challenging, but management expects a better F2H24.

Balkrishna Industries management expects volumes to decline slightly year-on-year (YoY) in the current financial year (FY2023-24). Analysts are estimating a decline of 1.5 percent in volume YoY in FY24.

Ahead of estimates, Morgan Stanley expects an 8% growth in operating profit, or EBITDA, in the September quarter.

Balkrishna Industries, one of the global leaders in producing tyres for the agricultural sector, has increased the capex target to Rs 900 crore from Rs 600 crore earlier. The additional amount will be spent on raising its mould manufacturing capacity.

Another brokerage house, Nomura, has given a “reduce” call on Balkrishna Industries with a target price of Rs 2,152 per share.

It expects the company’s second quarterly operating profit, or EBITDA, to be in line. Moreover, volumes will partly benefit from inventory created in June 2023 as it could not be shipped due to Cyclone Biparjoy.

The company expects a stable trajectory to continue and lead to a better second half of FY24. Thus, it expects a marginal dip in volume in FY24.

Balkrishna Industries reported 2.4% year-on-year topline growth in the March quarter, while the same for the financial year 2023 grew at 17.7%.

At 9.44 am, shares of Balkrishna Industries were trading 0.56 percent higher at Rs 2,553.3 on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries shares drop most in over a month after Nomura expects weaker first half of FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Balkrishna Industries Ltd, one of the global leaders in producing tires for the agricultural sector, dropped nearly 4 percent in trade on Monday after brokerage firm Nomura anticipated a much weaker first half of financial year 2024 for the company.

The brokerage maintained its reduce rating on the stock with a price target of Rs 2,100, which implies a potential downside of 12 percent from Friday’s closing levels.

Nomura said that the first half of financial year 2024 is likely to be much weaker for Balkrishna Industries as sales volume may decline on channel de-stocking. The brokerage further said that falling global crop yields can delay the expected recovery from the second half of the financial year.

Balkrishna Industries told the brokerage that it expects the industry to grow between 3-5 percent year-on-year over the medium-term. It maintained its 10 percent global market share target over the next 3-4 years from the current 5-6 percent.

Shares of Balkrishna Industries currently trade at around 16 times financial year 2025 forward EV/EBITDA, which, according to Nomura, is expensive, given the risks to the potential recovery.

Balkrishna Industries reported a 2.4 percent year-on-year topline growth in the March quarter, while the same for financial year 2023 grew at 17.7 percent.

Shares of Balkrishna Industries are trading 3.7 percent lower at Rs 2,301. The stock is down for the second day in a row. The stock has risen 8 percent on a year-to-date basis.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrisha Industries shares drop 8% after Q4 volumes drop, but management optimistic for FY24

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Balkrishna Industries plunged 8 percent during intra-day trade on Monday after the tyre manufacturing company reported weak results for the March quarter. The company reported a decline in profit and revenue in the last quarter of FY23.

The company’s profit after tax (PAT) stood at Rs 256 crore in the March quarter, down 32 percent year-on-year as against Rs 374 crore in the same quarter a year ago.

Its total income dropped 4 percent YoY to Rs 2,324 crore from Rs 2,432 crore in the corresponding period in the last financial year. Sales volume also fell by 6 percent YoY to 72,676 million tonnes (MT) from 77,119 MT in the year-ago period.

The company’s EBITDA plunged 14 percent YoY at Rs 494 crore from Rs 576 crore in the year-ago period. Also, its margins dropped to 21.3 percent in the March quarter as compared to 23.7 percent in the corresponding period of the preceding fiscal.

The auto ancillaries firm said that it remains positive for FY24 on margins and multiple levers like favorable raw material costs. Further, it said that the complete normalisation of logistics costs will aid the improvement in the margin profile.

Meanwhile, brokerage firm Nomura has given “neutral” ratings on Balkrishna Industries with a target price of Rs 2,015 per share, which is a potential downside of 22 percent from Friday’s closing levels. Initiating the neutral rating, the brokerage firm said that the tyre manufacturing firm’s revenue, volumes, and average realisations plunged in the quarter.

Shares of Balkrishna Industries are trading 7.31 percent lower at Rs 2,288.05.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This analyst recommends buying Balkrishna Industries and selling ICICI Bank, here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technical analyst Jay Thakkar, Head of Alternate Research at Sharekhan shared his top stock picks for the day.

While sharing his insights on the stock market during an interview with CNBC-TV18, Thakkar provided his analysis on two specific stocks, ICICI Bank and Balkrishna Industries, and offered recommendations based on their current trends.

According to Thakkar, ICICI Bank has displayed a negative divergence on the daily charts, leading to a reversal in its trading pattern. The stock is currently priced around Rs 937, and Thakkar anticipates a correction to occur in the near future, with levels expected to reach around Rs 920 to Rs 910.

To take advantage of this potential correction, he suggested selling the stock and implementing a stop loss at Rs 950 to manage risk. The stock has gained more than 2 percent in the past month.

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Conversely, Thakkar has a positive outlook on Balkrishna Industries and recommended buying the stock. He highlighted that Balkrishna Industries has recently experienced a breakout on a large triangular pattern, indicating a bullish trend.

The stock is currently trading at approximately Rs 2,355. Thakkar advised placing a stop loss at Rs 2,250 to protect against any unexpected downturns. Looking ahead to the June series, he suggested a target range of Rs 2,500 to Rs 2,600 for potential gains. The stock was up more than 16 percent over the past month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries shares plunge over 10% on poor Q3 results, weak guidance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of tyre manufacturer Balkrishna Industries tanked more than 10 percent on Monday after the company projected a single-digit growth for the near term due to recessionary trends in Europe. The stock hit a day’s low of Rs 2,041 per share, down 11 percent over the last close, during the session after the management told analysts that the company expects the destocking of inventory to continue in the coming quarters.

Balkrishna Industries has reported a steep 70 percent drop in the profit after tax to Rs 100 crore for the third quarter of FY23 from Rs 339 crore in a year ago following high inventory costs.

Its total income rose by 7 percent to Rs 2,215 crore in Q3 of FY23 from Rs 2,079 crore in the year ago quarter.

The EBITDA was down 17 percent at Rs 423 crore in the quarter under review compared to Rs 507 crore a year ago. Operational margins were down at 19.1 percent in the third quarter against 24.4 percent a year ago.

The company, in an earnings statement, said that it is currently experiencing channel inventory clearance in end markets as distribution channels across global markets have excess inventory across segments.

Slow lowering of raw material prices and improvement in delivery timelines has led to a slower ordering cycle by the channel.

Balkrishna Industries is expected to face the challenges of destocking in the fourth quarter of FY23 as well while recession fears continue to hit demand.

The management, in a conference call, said that the inventory destocking would continue in the coming quarters. Finished goods stock is currently at 2.5 months against the average of of 45-60 days.

Balkrishna Industries expects the benefit of raw material inventory correction to flow in partially in the last quarter of FY23 while the benefit of low input cost and freight is expected to be at least 300bps from Q1FY24 onwards.

The company’s capital expenditure in the current fiscal so far was at Rs 1,300 crore and some minor capex is left for Q4. Its net debt stands at Rs 1350 crore. The average forward hedge rate for FY23 stands at Rs 86 and the same for FY24 stands at Rs 87, it said.

Shares of Balkrishna Industries closed 10.97 percent down at Rs 2,053.35 on BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries completes commissioning of 55,000 MTPA carbon black expansion project

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Balkrishna Ind” isinid=”INE787D01026″ bseid=”502355″ nseid=”BALKRISIND” sector=”Tyres” exchange=”nse”]

Balkrishna Industries Ltd. (BIL), a Mumbai-based Indian multinational engaged in the manufacture of tyres for agricultural, industrial, and OTR (off-the-road) vehicles, has completed the expansion plan of a 55,000 MTPA (metric tonne per annum) carbon black project and power plant in Bhuj, Gujarat, as on December 31, 2022.

The company on Monday said that the Rs 650 crore project was part of its expansion plan approved by the board in November last year. The company had planned the advanced carbon black project of 30,000 MTPA to be commissioned by the March quarter.

Further, it commissioned a 50,000 MTPA brownfield tire plant at Rs 800 crore investment and expects a ramp-up of production in the second half of the current financial year.

Balkrishna Industries spent Rs 450 crore on modernisation, automation, and technology upgradation.

The company’s board decided to revert to its earlier decision of ceasing operations at the old plant in Waluj, Maharashtra. The earlier approved capital expenditure of Rs 350 crore for modernisation of the old plant will now be utilised at the new plant site to bring in economies of scale.

The execution will be done as a brownfield project, which is expected to be completed by the first half of the financial year 2024. The Waluj location will accordingly have an overall capacity of 55,000 MTPA at a single site.

The Balkrishna Industries Ltd. stock ended 0.29 percent lower at Rs 2,125 on Monday.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Balkrishna Industries expects European headwinds to continue to puncture earnings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Balkrishna Ind” isinid=”INE787D01026″ bseid=”502355″ nseid=”BALKRISIND” sector=”Tyres” exchange=”nse”]

Balkrishna Industries, one of India’s leading tyre exporters expects headwinds from Europe to continue to impact the company’s financial performance during the second half of the current financial year.

Half of the company’s sales volume in the first half of the current financial year came from Europe. 80 percent of overall volumes come from the export market.

During its earnings call, the company mentioned that there is no visible clarity on the current geopolitical scenario in Europe and that they are not witnessing any form of end-user confidence. They also expect a severe winter season to hurt earnings.

The company suspended its sales volume guidance for the current financial year, after a weak operating performance during the September quarter. EBITDA for the quarter fell 20 percent while margin contracted by nearly 10 percentage points.

Weakness came from a struggling global economy and a sharp rise in interest rates, which led to dealers and distributors reducing order placements.

In what could count as some relief for shareholders, the management added that the recent correction in raw material and logistics costs bode well for the company’s margin, the benefits of which may begin to kick-in from the early March quarter.

The company’s board also made some adjustments to its capex plans, by reverting to its earlier decision of ceasing operations at one of its old plants. The approved Rs 350 crore capex for the modernisation of the said plant will now be utilised at the new plant site to bring economies of scale.

As a result, the current achievable capacity for the company will stand reduced to 3.35 lakh MTPA, which will increase to 3.6 lakh MTPA in the first half of financial year 2024 once the Waluj brownfield plant is commissioned.

The management also mentioned that all capex, barring carbon black, now stands complete.

Shares of Balkrishna Industries opened higher, contrary to expectations but are trading off the highest-point of the day, up 2.4 percent at Rs 1,919.8.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow