Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 43419.04 Crore) operating in Tyres sector.
Balkrishna Industries Ltd. key Products/Revenue Segments include Tyres & Tubes, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2483.58 Crore, up 15.04 % from last quarter Total Income of Rs 2158.85 Crore and up 36.86 % from last year same quarter Total Income of Rs 1814.74 Crore. Company reported net profit after tax of Rs 374.84 Crore in latest quarter.
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Balkrishna Industries () reported strong demand trends in its key overseas markets with May’22 industry exports up 24% YoY. Though the data indicates continued momentum in OTR segment (up 32% YoY) and steady agri demand (up ~19% YoY), overall sales are up 4% QoQ (prorated) despite seasonality, and supply chain issues. Data continues to support the robust demand momentum driven by both agri and OTR segments (FY23-TD industry exports are up ~28% YoY on USD basis), aided by lower base of Q1FY22. Regionally, growth in May’22 was led by the US market (up 60% YoY) followed by RoW at 44% YoY. Current rise in natural rubber (~7% since Q4FY22) prices (chart 7) coupled with elevated container rates are likely to sustain pressure on H1FY23E margins. Better cost arbitrage, improving infra/mining investments across key markets of US/EU despite adverse macros supports our revenue growth assumption of ~18% CAGR over FY22-FY24E (~13% volume CAGR). Maintain BUY.
Promoters held 58.29 per cent stake in the company as of 30-Jun-2022, while FIIs owned 14.3 per cent, DIIs 11.17 per cent.
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