Balkrishna Industries' consolidated net profit jumped 45.3% to Rs 325.07 crore on a 30.6% increase in net sales at Rs 1,509.23 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) surged 53.7% to Rs 427.57 crore in Q3 December 2020 as against Rs 278.27 crore in Q3 December 2019. Current tax expense for the quarter soared 50.6% to Rs 99.38 crore as against Rs 65.97 crore in Q3 December 2019. The board has declared a third interim dividend of Rs 5 per equity share.
The company said "the demand continues to be strong in agriculture segment across geographies. In the other segments, demand continues to remain stable more or less stable post the recovery in the end markets of industrial, construction and mining segment. With 9M FY21 volumes of approximately 1,59,130 MT, we are increasing our guidance for FY21 and expect to end FY21 with sales volume of 2,15,000-2,20,000 MT. We strongly believe this demand trend to continue in FY22 and years to come."
The board has approved a capex plan of Rs 1,900 cr which includes brownfield project at Bhuj to increase tire capacity; increase carbon black capacity including advance carbon black and power plant at Bhuj; modernization, automation and technology upgradation capex at existing facilities. Further, the board has shelved the USA project.
Shares of Balkrishna Industries dropped 6.38% to Rs 1,722.20. Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.
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