Balkrishna Industries Q2 net profit up 16.7%
Balkrishna Industries, the tyre maker, reported highest ever sales volume during the three months ended September, the first full quarter of operations after the nation eased lockdown curbs.
Sales volumes rose 36% year-on-year to 61,224 million tonnes in the July-September period. That helped the tyremaker post a 47.4% increase in its overall revenue at Rs 1,578 crore. Net profit rose 16.7% to Rs 339.5 crore.
Earnings before interest, tax, depreciation and amortisation jumped twofold to Rs 536.8 crore. Ebitda margin expanded 900 basis points to 34%, aided by higher sales and lower input costs.
The board has declared a second interim dividend of Rs 4 apiece.
Balkrishna Industries expects to post marginal volume growth for the fiscal ending March 2021 amid a resurgence of Covid-19 cases in Europe, which accounts for 51% of the company’s overall volume. Still, demand continues to remain strong in the agriculture segment across geographies, while that in other segments is stable.
Analysts expect successful backward integration to play out favourably and to help mitigate some of the upcoming pressure in input costs and thereby protect margin.
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