Quarterly Performance update, Trending in the Economy

Balkrishna Industries Ltd – Quarter 4 FY22 Highlights

(A) Last 4 Quarters Performance – Balkrishna Industries ltd

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Balkrishna Industries Ltd- Quarterly performance

Key Margins – Quarterly

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Balkrishna Industries ltd- Key margins

(B) Quarter on Quarter Performance of Balkrishna Industries Ltd

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Balkrishna industries ltd- Quarter on Quarter Performance

(C) Annual Performance (YOY) of Balkrishna Industries Ltd

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Balkrishna ltd- Annual Performance

(D) Key Highlights - Quarter 4 FY22

  1. The raw material price (rubber) increased due to inflation.
  2. Due to a spike in demand from the market, company has stopped the ongoing renovation of the "Waluj" plant and is now setting up a new plant "Waluj-2" which has a capacity of 30,000 metric ton per annum and will be available by end of FY23, currently company is having a total capacity of 3,20,000 metric ton.
  3. Sales volume for the quarter was 77,119 metric ton against 68,007 metric ton last year and a growth of 13% YoY.
  4. For FY22, sales volume stood at 2,88,795 metric ton against 2,27,131 metric ton last year and a growth of 27% YoY basis.
  5. In FY22 54% of the sale is from Europe, 18% from India, 17% from America, and the remaining from the rest of the world.
  6. Meanwhile, from their total contribution, 69% of the total was contributed from the replacement segment in FY22.
  7. In terms of categories, agriculture contributed 66%, OTR, industrial & Construction also contributed 31% and remaining from the rest of the segments.
  8. Gross debt also stood at 243Cr at the end of 31st March 2022, and Debt/Equity is at 0.40.

Capex by Balkrishna Industries

Brownfield Tire Plant at Bhuj

Commissioning the 50,000 MT per annum brownfield plant at Bhuj which is expected to ramp up in production in the second half of FY23.

Project cost Rs. 800Cr

Carbon Black and Captive Power Plant

The plant is expected in commissioning 55000 MT per annum Carbon Black capacity along with Power Plant. The project will start commissioned in the second half of FY23.

Project cost Rs. 650Cr

Modernization, Automation, and technology Upgradation

Expected to complete by the end of the first half of FY23.

Project cost Rs 450Cr

Other Key Highlights from Management - Balkrishna Industries Ltd

  • EBITDA for the quarter was impacted by the higher logistics cost which was also up by 400bps and higher power prices.
  • Moreover, the company's debt increased as the company planned to set up a new plant that will take up to Rs 1,900 Crore out of which capex of Rs 1,023 Crore was incurred during FY22.
  • Debt/Equity increased from 0.17 in FY21 to 0.40 in FY22.
  • For FY23, the company aims to increase its capacity from 3,20,000 metric ton to 3,30,000 metric ton.

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry Publications.

Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered as a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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