The tyre manufacturing company's consolidated net profit skid 25.6% to Rs 131.56 crore on 21.4% decrease in net sales to Rs 942.61 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) fell 32.5% to Rs 172.27 crore in Q1 June 2020 as against Rs 255.15 crore in Q1 June 2019. Current tax expense for the quarter tanked 57.8% to Rs 40.78 crore as against Rs 96.70 crore in Q1 June 2019. The Q1 result was declared after market hours yesterday, 13 August 2020.
The company said that Q1 FY21 has been a good quarter inspite of the impact of COVID-19. The pick up in sales volumes in May and June led to a total sales volume of 38,096 MT in Q1 FY21.
EBITDA fell 15.20% to Rs 251 crore in Q1 June 2020 over Rs 296 crore in Q1 June 2019. EBITDA margin improved to 26.7% in Q1 June 2020 as compared to 24.3% in Q1 June 2019. The company said it is long-term debt free with cash & cash equivalents stood at Rs 1,175 crore as on 30 June 2020.
The company, in its regulatory filing, said the monthly run rate is gaining momentum and is very visible in July 2020 and August 2020. The demand is strong in agriculture segment across geographies reinforcing the belief on the potential of this segment as well as the brand positioning of Balkrishna Industries in end markets which is continuously helping the firm to gain market share. The non-agriculture segment is moving slow, on-account of low commodity prices and end user demand however, the company expects gradual uptick as economic activity increases across the globe.
The board has declared first interim dividend of Rs 3 per equity share (150%) for the financial year 2020-2021.
Shares of Balkrishna Industries slipped 0.73% at Rs 1,374.80. Balkrishna Industries is a tyre manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.
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