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Balkrishna Industries Q1 Review - Near Term Blip Amid Unchanged Long Term Guidance: ICICI Direct

Balkrishna Industries Q1 Review - Near Term Blip Amid Unchanged Long Term Guidance: ICICI Direct

<div class="paragraphs"><p>Balkrishna Industries Ltd. (Source: Company website).</p></div>
Balkrishna Industries Ltd. (Source: Company website).

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ICICI Direct Report

Balkrishna Industries Ltd. reported a muted performance in Q1 FY23. Standalone revenues at Rs 2,646 crore, up 11.5% QoQ. Tonnage for the quarter was up ~7.8% QoQ to 83,153 million tonne.

Ebitda in Q1 FY23 was at Rs 455.5 crore with corresponding Ebitda margins at 17.2% down 380 basis points QoQ. Gross margin erosion was sharp at ~150 bps QoQ while other expenses (driven by higher freight costs) were up ~206 bps QoQ, resulting in overall decline in margin trajectory.

Consequent profit after tax for the quarter came in at Rs 319.7 crore, down 14% QoQ, aided by higher than anticipated other income.

Balkrishna Industries announced an interim dividend of Rs 4/ share. Further, with environmental clearance in place, the company expects the commissioning of the second phase of carbon black project along with power plant during Q3 FY23. The advanced carbon black project of 30,000 million tonnes per annum will be commissioned in Q4 FY23.

Click on the attachment to read the full report:

ICICI Direct Balkrishna Industries Q1FY23 Result Update.pdf

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