Balkrishna Industries slumps after weak Q1 performance

5 Aug 2022 , 11:42 AM

Sales volumes stood at 83,153 million tonnes (MT) in quarter ended June 2022, up by 21% from 68,606 MT recorded in the quarter ended June 2021. Realized gain on foreign exchange was Rs 80 crore in the first quarter as against Rs 15 crore in the same period last year. Raw material costs increased by 59.1% YoY to Rs 1,400 crore while other expenses jumped 92.6% YoY to Rs 803 crore in Q1 FY23. EBITDA improved by 2% to Rs 547 crore in Q1 FY23 from Rs 535 crore in Q1 FY22. EBITDA margin was 20.1% in Q1 FY23 as against 29.2% in Q1 FY22. Profit before tax in Q1 FY23 stood at Rs 429 crore, down by 12% from Rs 485 crore in Q1 FY22. The companys management said: ?Raw Material prices have remained at elevated levels. We expect some relief to come in Q4 FY23. We continue to grapple with high logistics costs. We expect relief in logistics costs towards the end of Q3/early Q4. We continue to see a sustained uptick in demand for BKT tires. However, in Q2 we expect sluggish demand given macro challenges in Europe coupled with Heatwaves and inflationary trends in USA. Sales Volume guidance for FY23 stands at 320,000 – 330,000 MT.? Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture, and gardening. Powered by Capital Market – Live News