Balkrishna Industries fell 3.91% to Rs 1131 at 13:43 IST on BSE, extending recent losses triggered by the company announcing a capital expenditure plan of Rs 1700 crore.
Meanwhile, the S&P BSE Sensex was down 292.34 points, or 0.77% to 37,865.58.On the BSE, 1.37 lakh shares were traded in the counter so far compared with average daily volumes of 81,000 shares in the past two weeks. The stock had hit a high of Rs 1191.75 and a low of Rs 1117.60 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 796.43 on 25 September 2017.
Balkrishna Industries announced on Saturday, 1 September 2018, that its board of directors 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.
Shares of Balkrishna Industries tumbled 7.38% to settle at Rs 1263.45 on Monday, 3 September 2018. The stock has fallen 17.09% in three sessions from its close of Rs 1364.10 on 31 August 2018.
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
