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Balkrishna Industries rises after sales jump 36% YoY in Q4

Balkrishna Industries advanced 3.71% to Rs 1958 after the company reported 36% jump in net sales to Rs 2,373.87 crore in Q4 FY22 from Rs 1,745.89 crore in Q4 FY21.

May 16, 2022 10:31 IST | capital market
Sales volumes were at 77,119 million tonnes (MT) in quarter ended March 2022, up by 13% from 68,003 MT recorded in the quarter ended March 2021. Standalone EBITDA rose 3% to Rs 576 crore in Q4 FY22 from Rs 558 crore in Q4 FY21. EBITDA margin stood at 23.7% in Q4 FY22 as against 31.9% in Q4 FY21. Finance costs declined by 6.96% to Rs 2.14 crore while depreciation & amortization expenses rose by 12.82% to Rs 116.69 crore in the fourth quarter as compared to the corresponding quarter last year. The company realised a net forex gain of Rs 56 crore for quarter ended March 2021 as against 38 crore, during the period under review. Profit before tax declined by 1% to Rs 488 crore in Q4 FY22 over Q4 FY21. Tax outgo was Rs 115 crore (down 5.7% YoY) during the period under review. Consequently, BKT recorded 1% YoY rise in standalone net profit to Rs 374 crore in Q4 FY22. A domestic brokerage had reportedly estimated that BKT would report 4.5% YoY fall in net profit in the fourth quarter. It had reportedly expected net sales to increase by 22.4% YoY and EBITDA to fall by 8.2% YoY in Q4 FY22. The management of Balkrishna Industries said, ?The geo-political situation has aggravated supply chain problems. This has increased both the prices and availability of raw materials. Similarly, logistics and freight costs have continued to remain at elevated levels. End user markets continue to remain strong inspite of inflationary trends. The off-highway tyres (OHT) industry continues to see higher offtake on account of healthy demand across mining and agriculture markets; BKT brand is continuing to gain market share. The board of directors have decided keep the capex investment of Rs 350cr announced at old Waluj plant in November 2021, on hold. The operations at this plant will continue in order to have unhindered production and cater to the strong demand and quicker production schedule demanded by end customers. Sales Volume guidance for FY23 stands at 320,000 - 330,000 MT.? On full year basis, the company reported a 22.1% increase in net profit to Rs 1,410.69 crore on a 43.6% surge in net sales to Rs 1,410.69 crore in FY22 over FY21. Meanwhile, the companys board of directors recommended payment of final dividend of Rs 4 per share for the financial year ended 31 March 2022. Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture, and gardening. Powered by Capital Market - Live News

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