Earnings Review
Other expenses, high inventory push Balkrishna Ind PAT down
This story was originally published at 19:33 IST on 26 July 2025
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--Balkrishna Ind Apr-Jun net profit INR 2.87 bln
--Analysts saw Balkrishna Ind Apr-Jun net profit INR 4.09 bln
--Balkrishna Ind Apr-Jun net profit INR 2.87 bln vs INR 4.77 bln year ago
--Balkrishna Ind Apr-Jun revenue INR 27.60 bln vs INR 26.90 bln year ago
--Balkrishna Ind to pay INR 4 per share interim dividend
By Adhithya Aji
MUMBAI – Balkrishna Industries Ltd. reported a sharp fall in net profit for the June quarter as a fall in other income kept total income flat and a sharp rise in other expenses and inventories took total expenses up 11% on year. The tyre maker missed the Street estimates for net profit by a wide margin and the revenue estimate by a small margin.
The company reported a net profit of INR 2.87 billion, down 40% from INR 4.77 billion a year ago and down 21% from a quarter ago. Analysts estimated the net profit at INR 4.1 billion. The company reported revenues of INR 27.60 billion, up 2.6% from INR 26.89 billion a year ago and up marginally from INR 27.46 billion a quarter ago. Analysts had expected the company to report a revenue of INR 27.92 billion. The company's other income fell 34% to INR 1.04 billion from INR 1.59 billion in the year-ago quarter.
The company's total expenses for the June quarter were INR 24.73, up 11.3% from INR 22.21 billion in the year-ago quarter. Other expenses for the quarter rose 24% on year to INR 7.88 billion. This increase more than negated the 2% fall in cost of materials consumed, which constitutes 50% of the total expenses. Raw material costs were INR 12.50 billion in the reporting quarter. The company's depreciation and amortisation expenses rose 15.1 % on year to INR 1.86 billion. More
The net profit margin of the company fell to 10% from 17.4% a year ago. "PAT was impacted by M2M (mark to market) loss of INR 1.54 billion versus M2M gain, due to sharp increase in forex rates," Balkrishna Industries said. Higher depreciation also affected the net profit of the company.
The company posted earnings before interest, tax, depreciation, and amortisation of INR 6.55 billion for the June quarter, down 8% on year and lower than analysts' estimate of INR 7.00 billion. The company's EBITDA margin was 23.8%, down 228 bps on year. The EBITDA margin was lower due to higher share of sales in India, the impact of US tariff on sales, and lower sales volume, the company said.
The company's sales volume for the June quarter was 80,664 tonnes, down 3% on year. Europe, the main market of the company, accounted for 38.4% of total volume, down from 45.1% in the previous quarter. The company reported 35% sales volume in India, up sharply from 28.6% in the trailing quarter, and 17% from the Americas.
Friday, shares of the company had closed at INR 2,664 on the National Stock Exchange, down 2.36%. End
Edited by Ashish Shirke
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