Earnings Review
High input costs send Balkrishna Ind's Jan-Mar PAT down 25%
This story was originally published at 21:48 IST on 23 May 2025
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--Balkrishna Ind Jan-Mar net profit margin 12.72% vs 16.91% year ago
--Balkrishna Ind Jan-Mar operating margin 15.48% vs 18.44% year ago
--Balkrishna Ind FY25 revenue INR 104.13 bln vs INR 92.99 bln year ago
--Balkrishna Ind FY25 net profit INR 16.28 bln vs INR 14.38 bln year ago
--Balkrishna Ind to pay INR 4 per share final dividend
--Balkrishna Ind Jan-Mar revenue INR 27.47 bln vs INR 26.73 bln year ago
--Balkrishna Ind Jan-Mar net profit INR 3.62 bln vs INR 4.81 bln year ago
--Analysts saw Balkrishna Ind Jan-Mar net profit INR 4.39 bln
--Balkrishna Ind Jan-Mar net profit INR 3.62 bln
By Sunil Raghu
AHMEDABAD – Balkrishna Industries Ltd.'s net profit for the quarter ended March failed to beat market expectations as cost of materials consumed, finance costs, and employee expenses offset the fall in freight costs for the tyre company. The company reported a double-digit drop in its net profit, seeing it break the five-quarter streak of successive on-year growth in the net profit. The company's revenue from operations, however, was marginally above the street view, growing 3% on year.
The company reported a net profit of INR 3.62 billion for the March quarter, down 24.7% from INR 4.81 billion a year ago. Analysts had estimated the net profit at INR 4.39 billion. The company reported a revenue of INR 27.47 billion for the March quarter, up 2.75% from INR 26.73 billion a year ago. Analysts had expected the company to report a revenue of INR 26.97 billion.
Sequentially, the net profit fell 17.59% and net revenue rose 8.11%. The company's other income fell to INR 990.3 million for the March quarter, down from INR 1.71 billion a year ago.
The company's total expenditure for the March quarter was INR 23.70 billion, up 7.25% on year from INR 22.10 billion. Cost of materials consumed, which constituted nearly 56% of the company's total expenses, was INR 13.17 billion in Jan-Mar, up 7.97% on year. Other expenses for the quarter were INR 4.78 billion, up 10.7% on year. The company's freight and forwarding expenses fell 24.71% on year and depreciation and amortisation expenses rose 2.34% on year to INR 1.76 billion.
The company's operating margin for the March quarter was 15.48%, down from 18.44% in the year-ago quarter, while its net profit margin fell to 12.72% from 16.91% a year ago.
For FY25, the company reported a net profit of INR 16.28 billion, up 13.27% on year from INR 14.38 billion. Revenue for the period was INR 104.13 billion, up 11.98% on year from INR 92.99 billion. The company has announced a final dividend of INR 4 per share for FY25.
Balkrishna Industries posted earnings before interest, tax, depreciation, and amortisation of INR 7.03 billion for the March quarter, up 1% on year, beating analysts' estimate of INR 6.82 billion. The company's EBITDA margin was 24.78% for the March quarter, down 115 basis points on year, on account of higher raw materials costs. For FY25, the company's EBITDA was INR 26.82 billion, up 16% on year, with an EBITDA margin of 25.26%, up 50 basis points on year.
The company's sales volume for the March quarter was 82,062 tonnes, flat year-on-year. The sales volume for FY25 was 315,273 tonnes, up 8% on year. Europe, the main market for the company in terms of volume, accounted for 45.1% of the company's total volume in FY25, followed by India at 28.6% and Americas with 15.2%.
The company said that its total achievable capacity would reach 425,000 tonnes per annum post completion of current tyre capex and de-bottlenecking. The company said that its new off-road tyre project of 35,000 tonnes per annum at Bhuj is in progress and likely to be completed by end of FY26.
The company board has also approved capital expenditure of INR 35 billion over three years to set up an additional production facilities at Bhuj for carbon black, power plant, commercial vehicle tires, rubber tracks and passenger car radial tyres, the company said in its earnings filing with the stock exchanges Friday.
On Friday, shares of the company ended at INR 2,660.20 on the National Stock Exchange, up 0.4%. End
Edited by Akul Nishant Akhoury
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