Equity

EBITDA grew by 37% year on year to Rs 558 crore in Q4 FY21 from Rs 407 crore in Q4 FY20. EBITDA margin improved to 31.9% in Q4 FY21 from 29.3% in Q4 FY20. The company realised a net forex gain of Rs 38 crore for quarter ended March 2021.

Balkrishna Industries said that the demand continues to be robust in agriculture segment across geographies. In the other segments, demand has seen an uptick on back of increased commodity prices, infrastructure creation and pick-up in economic activity.

During FY21, the company faced multiple challenges related to raw material prices and its availability. Supply chain issues was also a big challenge especially post Suez Canal fiasco. However, a resilient BKT has been able to withstand these challenges and emerged stronger by posting its highest ever annual sales volumes.

For FY22, the company is guiding sales volume between 250,000-265,000 MT. The tyre manufacturer believes that the demand trend is likely to continue in FY22 and years to come. However, there may be COVID-19 related softness in demand leading us to give a wider range for annual guidance.

The company announced a capex program of Rs 1900 crore which will be funded by internal accrual and debt, if required. Post Brownfield capex achievable capacity of tire plant will stand at 335,000 MTPA. Modernization capex will lead to better efficiency.

The company reported a 22% jump in standalone net profit to Rs 1,155 crore for the year ended March 2021 (FY21) from Rs 945 crore for the year ended March 2020 (FY20). Revenue from operations increased by 20.4% to Rs 5758 crore in FY21 over FY20.

Meanwhile, the company has recommended a final dividend of Rs 5 per equity share.

Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.

Shares of Balkrishna Industries hit an all time high of Rs 2,069.85 on BSE in intraday today.

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