Shares of Balkrishna Industries plunged 8 percent during intra-day trade on Monday after the tyre manufacturing company reported weak results for the March quarter. The company reported a decline in profit and revenue in the last quarter of FY23.
The company's profit after tax (PAT) stood at Rs 256 crore in the March quarter, down 32 percent year-on-year as against Rs 374 crore in the same quarter a year ago.
Its total income dropped 4 percent YoY to Rs 2,324 crore from Rs 2,432 crore in the corresponding period in the last financial year. Sales volume also fell by 6 percent YoY to 72,676 million tonnes (MT) from 77,119 MT in the year-ago period.
The company's EBITDA plunged 14 percent YoY at Rs 494 crore from Rs 576 crore in the year-ago period. Also, its margins dropped to 21.3 percent in the March quarter as compared to 23.7 percent in the corresponding period of the preceding fiscal.
The auto ancillaries firm said that it remains positive for FY24 on margins and multiple levers like favorable raw material costs. Further, it said that the complete normalisation of logistics costs will aid the improvement in the margin profile.
Meanwhile, brokerage firm Nomura has given "neutral" ratings on Balkrishna Industries with a target price of Rs 2,015 per share, which is a potential downside of 22 percent from Friday's closing levels. Initiating the neutral rating, the brokerage firm said that the tyre manufacturing firm's revenue, volumes, and average realisations plunged in the quarter.
Shares of Balkrishna Industries are trading 7.31 percent lower at Rs 2,288.05.
