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Informist, Friday, Oct. 25, 2024

--Balkrishna Ind Jul-Sept EBITDA INR 6.19 bln vs INR 5.48 bln year ago 

--Balkrishna Ind Jul-Sept EBITDA margin 25.1% vs 24.4% year ago 

--Balkrishna Ind Jul-Sept net profit margin 14.2% vs 14.9% year ago 

By Akshay V. Johnson

MUMBAI – Balkrishna Industries Ltd. reported a higher-than-expected net profit for the September quarter. The company reported a net profit of INR 3.50 billion in Jul-Sept, up 4.2% from INR 3.35 billion a year ago. Analysts had estimated the company to report a net profit of INR 3.41 billion. The growth in net profit in Jul-Sept was the lowest in four quarters. 

The company reported a net revenue of INR 24.36 billion for the September quarter, up 9.5% from INR 22.26 billion a year ago. Analysts had estimated the company to report a net revenue of INR 23.48 billion. The company's revenue growth for the quarter was the lowest in three quarters. Sequentially, the company's net profit declined 26.8% and net revenue fell 9.4%. The company's other income for the September quarter was INR 900 million, down 15.9% on year.

For the September quarter, the company reported total expenses of INR 20.61 billion, up 9.1% from INR 18.89 billion a year ago. Balkrishna Industries' cost of materials consumed was INR 11.29 billion in Jul-Sept, up 5.5% from INR 10.71 billion a year ago. The company reported other expenses of INR 3.86 billion in Jul-Sept, down 7.3% on year. The company's freight and forwarding expenses surged 85.2% on year and depreciation and amortisation expenses rose 3.8% on year.

The company reported a net profit of INR 8.27 billion in Apr-Sept, up 27.7%. Its revenues were INR 51.26 billion, up 17.9%. The company has announced a second interim dividend of INR 4 per share and set Nov. 2 as the record date for the dividend.

Balkrishna Industries posted earnings before interest, tax, depreciation, and amortisation of INR 6.19 billion, up 13% on year. Analysts had estimated EBITDA at INR 5.42 billion. The company's EBITDA margin was 25.1% for the September quarter, up 73 basis points on year. Most analysts expected the company’s EBITDA margin for the September quarter to contract on year, with Sharekhan Ltd. estimating the sharpest fall of 210 basis points. 

The company's revenue, which grew in double digits in the preceding two quarters, grew in single digits this quarter because of lower growth in volume. The company posted sales volume of 73,298 tonnes in Jul-Sept, up 4% on year. Europe, the main market for the company in terms of volume, accounted for 44% of the company's total volume in Apr-Sept.

The company's net profit margin fell to 14.2% in the latest quarter from 14.9% a year ago. For Apr-Sept, Balkrishna Industries reported an EBITDA of INR 13.33 billion, up 29% on year. The company's EBITDA margin for Apr-Sept was 25.6%, 188 bps on year.

For Apr-Sept, the company's net cash inflow from operating activities was INR 8.59 billion, down from INR 12.21 billion in the same period last year. The net cash outflow from investing activities was INR 5.69 billion, down from INR 6.89 billion in the same period last year. The company's net cash outflow from financing activities was INR 2.49 billion, down from INR 5.33 billion in the year-ago period. On Friday, shares of Balkrishna Industries closed at INR 2,907.55 on the National Stock Exchange, down 1.1% from the previous close.  End

Edited by Saji George Titus

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