Balkrishna Industries Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 47208.06 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-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1885.08 Crore, up 3.88 % from last quarter Total Income of Rs 1814.74 Crore and up 92.61 % from last year same quarter Total Income of Rs 978.70 Crore. Company reported net profit after tax of Rs 330.56 Crore in latest quarter.
Investment Rationale
Balkrishna Industries’ (BIL) key export markets reported strong demand trends with Sep’21 industry exports up 31% YoY. Latest data (Sep’21) indicates continued momentum in OTR segment (up 32% YoY) even as agri (Ag) demand growth remained sturdy at ~31% YoY. Data continues to support the robust demand momentum driven by both Ag and OTR segments: FY22-YTD industry exports are up ~60% YoY on US$ basis. Regionally, growth in Sep’21 was led by RoW (up 49% YoY) followed by US (28%) and EU (24%). Recent decline (~23% since Q1FY22) in international rubber prices (Chart 7) bodes well for margins in H2FY22. Stronger-than-expected capex from key industrial customers remains a key upside risk to revenue growth assumption of ~31% YoY for FY22E (~22% volume). Valuations have turned reasonable.
Promoter/FII Holdings
Promoters held 58.3 per cent stake in the company as of 30-Sep-2021, while FIIs owned 15.42 per cent, DIIs 12.56 per cent.
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