Balkrishna Industries fell 7.15% to Rs 1266.50 at 14:29 IST on BSE after the company announced a capital expenditure plan of Rs 1700 crore.
The announcement was made on Saturday, 1 September 2018.Meanwhile, the S&P BSE Sensex was down 84.76 points, or 0.22% to 38,560.31.
On the BSE, 1.35 lakh shares were traded in the counter so far compared with average daily volumes of 60,000 shares in the past two weeks. The stock had hit a high of Rs 1,363.50 and a low of Rs 1,255 so far during the day. The stock hit a record high of Rs 1,467.40 on 29 August 2018. The stock hit a 52-week low of Rs 790 on 1 September 2017.
Balkrishna Industries said that its board of directors at its meeting held on 1 September 2018 approved a capital expenditure (capex) plan of upto $100 million for setting up a greenfield tire plant in USA through a wholly owned subsidiary to be set up. The company shall also incur capex of upto Rs 1,000 crore for its Indian operations. The entire capex will be completed within a period of 30 months. This is in addition to the current capex underway for the carbon black plant. The entire capex of Rs 1,700 crore would be funded via a mix of debt and internal accruals.
Net profit of Balkrishna Industries rose 50.35% to Rs 230.25 crore on 34.62% rise in net sales to Rs 1362.39 crore in Q1 June 2018 over Q1 June 2017.
Balkrishna Industries (BKT) is a leading manufacturer in the off-highway tire market. The company focuses on specialist segments such as agricultural, construction and industrial vehicles as well as earthmoving, port and mining, ATV, and gardening applications.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content