Balkrishna Industries - Weakness To Linger For A Couple Of More Quarters: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Industry off-highway tyre exports remained subdued in January 2023, closer to October 2022 lows, post spiking up in the seasonally strong December 2023. Overall OHT export revenues were down 9% YoY in Jan-23 (up 6% FY23-to-date) with the agri tyre segment down 12% YoY versus off the road down 3% YoY.In Jan-23, exports to the Europe and U.S. declined 9% and 18% YoY respectively. Due to container shortages globally and ~five times increase in container prices early CY22, distributors stocked up excess inventory (~10% higher than retail demand) between March-July 2022. The destocking exercise started in Aug-22 and we expect it to persist till Q1 FY24E, post which the quantum of exports should once again stabilise at ~$140 million-145 million/month. Also, due to discontinuation of container surcharge rates getting passed on amid declining container rates, realisation levels for OHT exports, we believe, would have contracted by ~6-8% from Q2 FY23 levels. This would impact India’s monthly OHT export value. For Balkrishna Industries, we believe, post a subdued Q3 FY23, volumes should remain at sub-70 thousand tonne in Q4 too, with normalised 75 kte quarterly volumes coming only from Q2 FY24E onwards..Click on the attachment to read the full report:.KEC International - Transmission Orders Picking Up: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Balkrishna Industries - Weakness To Linger For A Couple Of More Quarters: ICICI Securities

Off-highway tyre industry exports remain subdued post a seasonal upswing in December 2023.

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