The tyre maker's consolidated net profit jumped 15.8% to Rs 340.94 crore on 45.5% rise in net sales to Rs 1,577.90 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) soared 74.1% to Rs 452.32 crore in Q2 September 2020 as against Rs 259.79 crore in Q2 September 2019. Current tax expense for the quarter surged 196.7% to Rs 115.28 crore as against Rs 38.85 crore in Q2 September 2019. The Q2 result was declared post market hours yesterday, 6 November 2020.
The manufacturing operations which were discontinued due to lockdown for most part of April 2020 were resumed towards the last week of April when lockdown was partially lifted by the Government of India. After following stringent safety and security measures across all the plants, the company has since May 2020 gradually ramped up manufacturing activities.
Post lifting of lockdown, the work on green field tire project at Waluj and other expansions at Bhuj plant of the company are progressing well. The company said it is trying to complete these projects as per schedule i.e. before 31st March 2021 subject to delay of one quarter, if any, due to further lockdown or any unforeseen circumstances.
The company said that the demand continues to be strong in agriculture segment across geographies. In the other segments, demand continues to remain stable. "Our diversified products portfolio, strong presence across the globe, multiple sourcing bases of raw materials and strong balance sheet with no long-term debt makes our company resilient to face any challenges and to maintain competitive edge in the global market," it added.
With the volume of 99,320 MT achieved in first half, the firm expects to cross FY20 sales volumes in FY21, marginally subject to no further deterioration due to COVID-19.
On a standalone basis, sales volumes jumped 36% to 61,224 MT in Q2 September 2020 over Q2 September 2019. Net profit rose 16% to Rs 339 crore and total income rose 40% to Rs 1,551 crore during the period under review. EBITDA for the quarter jumped 71% to Rs 527 crore. EBITDA margin stood at 34% in Q2 FY21 as against 27.9% in Q2 FY20.
The board has declared a second interim dividend of Rs 4 per equity share.
Shares of Balkrishna Industries advanced 2.88% to Rs 1,452.50 on BSE on Friday, 6 November 2020. The stock traded in the range of Rs 1,410.50 to Rs 1,468.20 yesterday.
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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