Balkrishna Industries Ltd shares dropped more than 7% on Thursday, January 25, despite the company reporting a robust growth in net profit for the December quarter.
In its third quarter earnings results released after market hours on Wednesday, the leading tyre producer reported a single digit growth in revenue from operations. The company’s revenue from operations increased 5% on a year-on-year (YoY) basis to ₹2,274.4 crore for the quarter ended on December 31, 2023, compared to ₹2,165.6 crore in the same period a year ago.
The off-highway tyre major’s sales volume also showed a decent increase in the December-ended quarter, rising 9% from last year to 72,749 MT, recovering in the third quarter of this fiscal. The figure is still down 8% from last year for the nine months ended December 31, 2023 at 2,10,000 MT.
The company’s net profit, witnessed a 181.71% growth in the December to ₹305.4 crore as opposed to a net profit of ₹108.4 crore in the corresponding period of the preceding fiscal, as per the company’s stock exchange filing.
The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 101% to ₹540.6 crore in the third quarter of this fiscal compared to ₹269.3 crore in the same period a year ago.
The EBITDA margin too jumped to 23.8% in the reporting quarter, in comparison to 12.4% reported in the same quarter last fiscal.
Further, Balkrishna Industries’ board also declared a third interim dividend of ₹4 per equity share or 200% on shares having a face value of ₹2 each for FY24, with the record date set as February 2, 2024.
Shares of Balkrishna Industries were trading 6.9% lower at ₹2,523.9 per piece on BSE at 12:25 pm.
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