Latest news with #BalkrishnaIndustries
Yahoo
26-05-2025
- Automotive
- Yahoo
Balkrishna Industries Ltd (BOM:502355) Q4 2025 Earnings Call Highlights: Strategic Growth ...
Release Date: May 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Balkrishna Industries Ltd (BOM:502355) has set a strategic goal to reach a revenue milestone of INR 23,000 crore by 2030, with a clear plan involving three growth levers. The company has achieved global leadership in the agricultural tire sector and plans to reinforce this position across all geographies. Balkrishna Industries Ltd (BOM:502355) is expanding its carbon black plant, which is expected to enhance revenue and margin potential. The company is planning to enter new tire categories for the Indian market, which is expected to contribute significantly to revenue by 2030. Despite geopolitical tensions and global economic uncertainty, the company delivered its highest-ever annual sales revenue, highlighting the robustness of its business strategy. Profit after tax for the quarter was down by 25%, primarily due to M2M loss and higher financial costs. The company faces challenges in entering new competitive segments, requiring significant investment in brand building and network expansion. There is uncertainty in providing guidance for the core business due to volatile global scenarios, including trade wars and geopolitical tensions. The company is absorbing part of the increased US tariff costs, which could impact profitability. The expansion into new tire categories may initially dilute margins until these segments reach full commercialization and scale. Warning! GuruFocus has detected 2 Warning Signs with BOM:502355. Q: Can you provide more clarity on the new segments Balkrishna Industries plans to enter over the next five years, considering the competitive nature of these markets? A: (Unidentified_4) Our strategy is based on our demonstrated success in the agriculture and other off-highway segments in India over the last five years. We believe our all-steel radial technology will support our entry into the truck bus radial markets in India, which is growing at 6.5%. We are confident in our ability to create a difference in the Indian market. Q: With the new segments, will there be changes in investment plans, particularly in brand visibility and network expansion? A: (Unidentified_2) We plan to maintain our current level of investment in brand visibility. As our turnover increases, the percentage of spend will decrease, leading to cumulative benefits over the five-year journey. Q: What are the capacities for the pilot plants of PCR and TBR, and are you targeting domestic or export markets? A: (Unidentified_4) The initial capacity is for the domestic market. Our truck bus radial tires will come from our existing mining TBR capacity, allowing early market entry. The car radial entry will follow later, focusing initially on the domestic market. Q: Can you provide guidance for FY26 in terms of volume and the specialty carbon black business? A: (Unidentified_2) We cannot provide guidance due to global volatility. The specialty carbon black business started trials last quarter, and it will take time to progress. We expect peak utilization by FY27. Q: How does the current tariff situation affect your inventory and market share strategy? A: (Unidentified_2) Inventory levels at our distributor level are stable. We plan to evolve our market strategy based on the response we receive and aim to maintain competitive advantages as we enter new markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
26-05-2025
- Automotive
- Business Standard
Balkrishna Inds drops after weak Q4 outcome
Balkrishna Industries dropped 5.97% to Rs 2501 after the company's standalone net profit fell 24.70% to Rs 362.09 crore while net sales rose 2.75% to Rs 2,746.59 crore in Q4 March 2025 over Q4 March 2024. Profit fore tax fell 24.97% year-on-year to Rs 475.39 crore in Q4 March 2025. EBITDA for Q4 stood at Rs 703 crore, up 1% YoY. The EBITDA margin came in at 24.8%, lower than 25.9% in Q4 FY24. For the full year, the company's standalone net profit rose 13% to Rs 1,628 crore while net sales rose 11.98% to Rs 10,412.88 crore in the year ended March 2025 over the year ended March 2024. PBT rose 14% to Rs 2,156 crore in FY25. EBITDA rose 16% to Rs 2,682 crore in FY25 over FY24. EBITDA margin stood at 25.3% in FY25, higher than 24.8% in FY24. The company's standalone net cash from operating activities stood at Rs 1,753.22 crore in FY25, lower than Rs 2,052.45 crore in FY24. The company announced plans for a phased entry into the premium Passenger Car Radial (PCR) and Commercial Vehicle Radial (CVR) tyre segments, with an initial focus on the domestic replacement market. The pilot launch for CVR tyres is scheduled for Q4 FY26, followed by a gradual scale-up. The PCR tyre pilot will commence in Q3 FY27, with a similar gradual ramp-up. Following the announcement, a foreign brokerage downgraded Balkrishna Industries' rating from "buy" to "neutral" and reduced its price target to Rs 2,644 from Rs 3,242, citing higher risks due to the companys diversification into more competitive segments. Balkrishna Industries is engaged in the business of manufacturing and selling of "off-highway tyres" (OHT) in the specialist segments such as agricultural, industrial & construction, earthmovers & port, mining, forestry, lawn & garden and all terrain vehicles (ATV).
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Business Standard
26-05-2025
- Automotive
- Business Standard
Tyre maker Balkrishna Industries' stock down 10% in firm market; here's why
Balkrishna Industries share price today Balkrishna Industries (BKT) shares slipped 10 per cent to ₹2,385 on the BSE in Monday's intraday trade, in an otherwise firm market, after the company reported lower-than-expected profit after tax (PAT) in the March 2025 quarter (Q4FY25) primarily due to forex loss. The company also plans a modular entry into premium passenger car radial tires and commercial vehicles radial tires with initial focus on the domestic replacement market in both categories. At 09:34 AM, BKT was quoting 9.7 per cent lower at ₹2,402.70, as compared to 0.78 per cent rise in the BSE Sensex. Q4 results Balkrishna Industries' reported standalone net sales for the quarter were up 2.8 per cent year-on-year (Y-o-Y), at ₹2,747 crore, amid flat tyre sales volume of 82,062 tonne. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins in Q4FY25 came in at 21.9 per cent, down 124 bps Q-o-Q. The margin contracted due to higher input costs, which are likely to have peaked in Q4. PAT for the quarter stood at ₹362 crore, down 24.7 per cent Y-o-Y, primarily due to an unrealised forex loss. Management commentary The management earmarked an ambitious five-year roadmap to scale up revenue by 2.2x to ₹23,000 crore by 2030. This would be driven by continued outperformance in its core OHT segment (70 per cent contribution estimate by 2030), where it targets to move to an 8 per cent share by 2030 from 6 per cent currently, for which capacity is being expanded to 425k MT per annum from the current 360k MT per annum; 10 per cent contribution from sales of carbon black to a third party, for which carbon black capacity is being increased to 360k mtpa from the current 200k mtpa; and a foray into Truck and Bus Radial (TBR) and premium Passenger Car Radial (PCR) segments, which is expected to contribute to 20 per cent of revenue by 2030. For this ambitious growth, BKT has earmarked ₹3,500 crore capex over the next three years, in addition to the ₹50-70 crore capex that would be invested in the core segment. Given its backward integration capabilities and market understanding, management does not expect this foray to materially dilute either margins or returns by 2030. Motilal Oswal Financial Services on Balkrishna Industries shares BKT continues to face demand headwinds in its key global markets. Hence, the brokerage firm has cut its earnings estimates by 8 per cent each for FY26/FY27. Further, its foray into the PCR/TBR segments is likely to be critically monitored from here on for whether or not it is able to gain material traction in these segments and would margins and returns be materially dilutive in the long run. "While the stock has not done well in the recent past and its valuations at 27.7x FY26E and 22.9x FY27E are not too demanding, its future target multiple is likely to be a function of its success in these new segments," MOFSL said. The success will not only be in terms of market share gains but also without materially hurting core returns – which is likely to be a herculean task, in our opinion. The brokerage retained its target multiple for BKT and continues to value it at 22x FY27E. However, this may warrant a change going forward if BKT's returns plunge due to this foray. Reiterate Neutral with a target price of ₹ 2,553. ALSO READ | ICICI Securities on Balkrishna Industries The company announced a focused capex of ₹3,500 crore over three years — entirely funded through internal accruals — is aimed at expanding capacity in its core Off-Highway Tire (OHT) segment, scaling its carbon black operations, and entering new high-potential radial tire categories in India (TBR, PCR replacement). With clear revenue targets for each growth lever, backward integration benefits, and a healthy net cash position, BKT is well-positioned to compound earnings over the medium term. However, these new segments have historically commanded less margins, RoCE profile, and valuations than BKT's base OHT business, which will have long term implications for its blended margins, RoCE's and valuations. The brokerage firm expects the stock to open negative on its diversification efforts into mass segments carbon black and TBR & PCR segments. This shall challenge the premium valuations commanded by the company in the past.
Time of India
26-05-2025
- Business
- Time of India
Balkrishna Industries shares slump 10% after Q4FY25 PAT drops 25% YoY
Shares of Balkrishna Industries tumbled 10% to hit an intraday low of Rs 2,385 on the BSE in Monday's trade after the company reported a sharp 25% year-on-year (YoY) decline in net profit for the quarter ended March 2025 (Q4FY25). The tyre maker posted a profit after tax (PAT) of Rs 362 crore. Despite a 5% YoY increase in revenue to Rs 2,838 crore and a marginal 1% rise in EBITDA to Rs 703 crore, the company's EBITDA margin contracted by 115 basis points YoY to 24.78%. Meanwhile, the company's sales volume for the quarter remained flat at 82,062 metric tonnes. The board of Balkrishna Industries also announced a final dividend of Rs 4 per equity share for the fiscal year. For the full financial year 2025, Balkrishna Industries posted a 13% Yo increase in net profit to Rs 1,628 crore and its revenue from operations rose 13% YoY to Rs 10,615 crore during the year. Further, EBITDA for the fiscal year stood at Rs 2,682 crore, marking a 16% YoY growth, while the EBITDA margin improved by 50 basis points to 25.26%, indicating better cost management and operating leverage. The sales for FY25 witnessed a growth of 8% YoY to 3,15,273 metric tonnes. Additionally, Balkrishna Industries' segmental volume profile for FY25 shows that the agriculture segment contributed the largest share at 59.9%, followed by the Off-The-Road (OTR) segment at 36.6%, while other segments accounted for 3.5% of total sales volumes. Also read: Nifty likely to consolidate with key support at 24,500: Analysts Balkrishna Industries share price performance Balkrishna Industries' stock has seen a sharp correction over multiple timeframes. Over the past one year, the stock has declined 20.79%, while on a year-to-date (YTD) basis, it is down 16.08%. In the last six months, the stock has fallen 12.82%, and over the past three months, it has registered a 10.04% decline. Even in the last one month, shares have dropped 4.37%. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
26-05-2025
- Business
- Economic Times
Balkrishna Industries shares slump 10% after Q4FY25 PAT drops 25% YoY
Live Events Balkrishna Industries share price performance (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Balkrishna Industries tumbled 10% to hit an intraday low of Rs 2,385 on the BSE in Monday's trade after the company reported a sharp 25% year-on-year (YoY) decline in net profit for the quarter ended March 2025 (Q4FY25). The tyre maker posted a profit after tax (PAT) of Rs 362 a 5% YoY increase in revenue to Rs 2,838 crore and a marginal 1% rise in EBITDA to Rs 703 crore, the company's EBITDA margin contracted by 115 basis points YoY to 24.78%.Meanwhile, the company's sales volume for the quarter remained flat at 82,062 metric board of Balkrishna Industries also announced a final dividend of Rs 4 per equity share for the fiscal the full financial year 2025, Balkrishna Industries posted a 13% Yo increase in net profit to Rs 1,628 crore and its revenue from operations rose 13% YoY to Rs 10,615 crore during the EBITDA for the fiscal year stood at Rs 2,682 crore, marking a 16% YoY growth, while the EBITDA margin improved by 50 basis points to 25.26%, indicating better cost management and operating sales for FY25 witnessed a growth of 8% YoY to 3,15,273 metric Balkrishna Industries' segmental volume profile for FY25 shows that the agriculture segment contributed the largest share at 59.9%, followed by the Off-The-Road (OTR) segment at 36.6%, while other segments accounted for 3.5% of total sales Industries' stock has seen a sharp correction over multiple timeframes. Over the past one year, the stock has declined 20.79%, while on a year-to-date (YTD) basis, it is down 16.08%. In the last six months, the stock has fallen 12.82%, and over the past three months, it has registered a 10.04% decline. Even in the last one month, shares have dropped 4.37%.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
