Balkrishna Industries' consolidated net profit jumped 14.69% to Rs 391.03 crore on a 31.32% surge in revenue from operations to Rs 2,072.23 crore in Q2 FY22 over Q2 FY21.
On a standalone basis, the company's net profit grew 11% to Rs 377 crore on a 29.82% increase in revenue from operations to Rs 2,050 crore in Q2 FY22 over Q2 FY21. Sales volumes climbed 19% to 72,748 million tonnes (MT) in Q2 September 2021 from 61,224 million tonnes (MT) in Q2 September 2020.
Standalone EBITDA rose 7% to Rs 564 crore in Q2 FY22 from Rs 527 crore in Q2 FY21. EBITDA margin was at 27.1% in Q2 FY22 as against 34% in Q2 FY21. Profit margin stood at 18.1% in Q2 FY22 as compared to 21.9% in Q2 FY21.
Balkrishna Industries' new plant at Waluj, Aurangabad (Maharashtra) is already functional from middle of September 2021. The original plan was to shut down the old plant at Waluj after the new plant becomes operational. Considering the current demand scenario and the strong outlook, the board decided to continue operations of the old plant after making suitable capex plant. In order to achieve this, a capex of Rs 350 crore will be required to add advanced machineries, replacement of certain old machines, upgradation of certain systems and some civil work on the old factory building.
The advantage of this capex will be to get the much-needed capacity enhancement in a short period of time. The old Waluj Plant post this capex will be able to produce 25,000 million tonnes (MT) p.a. This capex will be incurred over a period of next 6-9 months and the enhanced capacity be available from Q3 of FY22-23.
The board has declared a second interim dividend of Rs 4 per equity share (i.e. 200%) on the equity shares of Rs 2 each (face value) for the FY 2021-22 and the payment thereof shall be credited/ dispatched within 30 days from the date of declaration as per applicable provisions of Companies Act, 2013, to such shareholders as on record date i.e. 19 November 2021.
Shares of Balkrishna Industries rose 0.65% to Rs 2,394.05 on BSE. Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture and gardening.
Balkrishna Industries is long-term debt free with cash & cash equivalents of Rs 1,659 crore as on 30 September 2021.
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