Balkrishna Industries Limited- Q2 Results

Last Updated on October 30, 2023 by BFSLTeam BFSLTeam

Introduction

Balkrishna Industries Limited (BKT) has been pioneering the creation and manufacture of safe, innovative, and performance-oriented tyres for the last three decades. The Indian multinational tyre manufacturing company offers off-highway tyres that are employed in specialist segments like mining, agriculture, and gardening. Since its inception, the company has diversified its product line by manufacturing tyres for ATVs and earthmoving.

The company released its financial results for Q2 FY 2023-24 on October 21st. Here is a snapshot of its performance and key metrics.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Standalone)

• The revenue from operations (net sales) fell 17.69% YoY to ₹2,225.84 Cr as against ₹2,704.29 Cr during Q2 FY 2022-23.
• The company reported a 16.94% YoY net profit (PAT) decrease at ₹335.39 Cr compared to ₹403.80 Cr during Q2 FY 2022-23.
• The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at ₹548 Cr during the period under review, down 3% YoY from ₹564 Cr from Q2 FY 2022-23. Sequentially, it rose 13% from ₹487 Cr during Q1 FY 2023-24.
• The company’s Proft Before Tax (PBT) fell 17% YoY to ₹443.84 Cr during the second quarter as against ₹532.13 Cr during Q2 FY 2022-23.

As per the exchange filing, BKT reported a decline of 17.69% YoY in its net sales at ₹2,225.84 Cr during the second quarter compared to ₹2,704.29 Cr during Q2 FY 2022-23.

In terms of the net profit, profits fell 16.94% YoY to ₹335.39 Cr during the quarter under review, as against ₹403.80 Cr during the same period last year. However, the PAT increased by almost 7% QoQ, as the company reported a net profit of ₹312.28 during Q1 FY 2023-24.

Looking at the first half of the year, the sales volume clocked 1,37,794 MT during H1 FY 2023-24, with a net profit of ₹647.67 Cr compared to ₹723.54 Cr during H1 FY 2022-23.

The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 13% QoQ at ₹548 Cr as against ₹487 Cr during Q1 FY 2023-24.

The company revealed that it had faced several challenges during the second quarter on account of heat waves and recessionary fears in export markets. Additionally, the company reported that the Q2 volumes were partly contributed by the inventory prepared in June 2023 but couldn’t be shipped out because of the Biparjoy cyclone’s impact.

Management Commentary

The company made the following announcements while announcing Q2 FY 2023-24 results.

Major Announcements

• To drive growth and assume better quality control, BKT will set up a mould manufacturing capacity, which will be a standalone project at Bhuj. This will require a capex spend of ₹300 Cr.

Also Read: Balkrishna Industries Share Price

Balkrishna Industries Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹5,350.57 Cr	₹4,345.86 Cr
Total Income	₹5,678.85 Cr	₹4,556.50 Cr
Total Expenses	₹4,717.88 Cr	₹3,702.11 Cr
Profit Before Tax (PBT)	₹960.97 Cr	₹854.39 Cr
Profit After Tax (PAT)	₹723.54 Cr	₹647.67 Cr
Total Comprehensive Income After Tax	₹860.02 Cr	₹794.74 Cr

Balkrishna Industries Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹2,120.02 Cr	₹2,225.84 Cr
Total Income	₹2,223.70 Cr	₹2,332.80 Cr
Total Expenses	₹1,813.15 Cr	₹1,888.96 Cr
Profit Before Tax (PBT)	₹410.55 Cr	₹443.84 Cr
Profit After Tax (PAT)	₹312.28 Cr	₹335.39 Cr
Total Comprehensive Income After Tax	₹400.45 Cr	₹394.29 Cr

Balkrishna Industries Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹5,276.95 Cr	₹4,412.54 Cr
Total Income	₹5,609.32 Cr	₹4,625.39 Cr
Total Expenses	₹4,681.03 Cr	₹3,740.17 Cr
Profit Before Tax (PBT)	₹928.29 Cr	₹885.22 Cr
Profit After Tax (PAT)	₹689.22 Cr	₹679.32 Cr
Total Comprehensive Income After Tax	₹816.02 Cr	₹822.75 Cr

Balkrishna Industries Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹2,159.35 Cr	₹2,253.19 Cr
Total Income	₹2,265.11 Cr	₹2,360.28 Cr
Total Expenses	₹1,835.41 Cr	₹1,904.76 Cr
Profit Before Tax (PBT)	₹429.70 Cr	₹455.52 Cr
Profit After Tax (PAT)	₹331.88 Cr	₹347.44 Cr
Total Comprehensive Income After Tax	₹418.45 Cr	₹404.30 Cr

Profit and Loss: Standalone Figures

Particulars	Q2 FY 2023-24	Q2 FY 2022-23	YoY	Q1 FY 2023-24	QoQ	FY 2022-23
Sales (MT)	70,585	78,872	-11%	67,209	5%	3,01,181
Total Income	₹2,247 Cr	₹2,806 Cr	-20%	₹2,115 Cr	6%	₹10,072 Cr
EBITDA	₹548 Cr	₹564 Cr	-3%	₹487 Cr	13%	₹2,028 Cr
EBITDA Margin	24.4%	20.1%		23%		20.1%
Profit Before Tax (PBT)	₹444 Cr	₹532 Cr	-17%	₹411 Cr	8%	₹1,451 Cr
Profit After Tax (PAT)	₹335 Cr	₹404 Cr	-17%	₹312 Cr	7%	₹1,079 Cr
PAT Margin	14.9%	14.4%		14.8%		10.7%

Balkrishna Industries Limited: Consolidated Balance Sheet

Particulars	As of September 30, 2023
Sub-Total Non-Current Assets	₹8,803.29 Cr
Sub-Total Current Assets	₹3,771.51 Cr
Total Assets	₹12,574.80 Cr
Sub-Total Equity	₹8,225.03 Cr
Sub-Total Non-Current Liabilities	₹1,290.68 Cr
Sub-Total Current Liabilities	₹3,059.09 Cr
Total – Equity and Liabilities	₹12,574.80 Cr

Stock Performance

Balkrishna Industries Limited released its quarterly results for Q2 FY 2023-24 on October 21st. The following Monday, the company’s shares opened at ₹2,485.05 and rose 0.96%, eventually closing at ₹2,563.65 apiece on BSE.

About the Company

Balkrishna Industries Limited (BKT) was founded in 1987 and has its headquarters in Mumbai, Maharashtra. It primarily manufactures and sells off-highway tyres (OHT) in specialist segments like all-terrain vehicles (ATVs) and earthmoving. The company has five factories in Bhuj, Dombivali, Bhiwadi, Aurangabad, and Chopanki. Additionally, it operates 4 subsidiaries in Europe and North America and has distribution partners in more than 160 countries.

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Sources:

https://www.bkt-tires.com/downloads/14395/11887/2023-24__Quarter_2.pdf

https://www.bkt-tires.com/downloads/14399/11891/BKT_Investor_Presentation_Oct_2023.pdf

https://www.bseindia.com/xml-data/corpfiling/AttachLive/21418064-5726-4586-8b2a-b6c0657673d0.pdf