Balkrishna Industries shares jump 8% after Q1 net profit rises 50% YoY to Rs 432 crore

Shares of tyre-maker Balkrishna Industries surged 8% to Rs 2,249 apiece on the BSE on Thursday after the company reported a 50% year-on-year (YoY) jump in consolidated net profit to Rs 432 crore for the June quarter.

Revenue from operations rose 24% YoY to Rs 3,409 crore from Rs 2,759 crore in the corresponding quarter last year, driven by strong volume growth.

According to the company's earnings statement released on Wednesday, shareholders also approved a dividend of Rs 4 per equity share. Ebitda increased 7% YoY to Rs 703 crore from Rs 656 crore a year ago.


The Off-Highway Tyres (OHT) business accounted for 90% of total volumes during the June quarter, while the carbon black segment contributed the remaining 10%.

The company said it generated revenue from sales across more than 160 countries through its global distribution network spanning the Americas, Europe, India and other international markets.

Balkrishna Industries share price

Despite Thursday's rally of over 8% from the previous close of Rs 2,081.10, the stock is still down more than 4% so far this month and has declined over 18% in the past 12 months.

BKT's 2030 growth plans

The company is targeting 2.2x revenue growth by 2030. It expects its On-Highway business to capture a 5% market share and contribute 20% of total revenue, while aiming for an 8% global market share in the Off-Highway Tyres segment. To support these goals, BKT has planned a capital expenditure of Rs 6,800 crore through FY29.

BKT also outlined a strong profitability outlook, saying it expects blended Ebitda margins of 23-25% after full commercialisation, which it believes will drive significant growth in absolute Ebitda.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)