Balkrishna Industries shares tumbles 12% on Q3 earnings

Shares of tyre manufacturing firm Balkrishna Industries tumbled 11.5% to Rs 2,041 in Monday's trade on BSE after the company's consolidated net profit for the December quarter of FY23 declined 68% year-on-year (YoY) to Rs 108.38 crore as compared to Rs 339 crore reported in the corresponding period last year.

The company posted revenue from operations of Rs 2165.57 crore in the quarter ended December 2022 as against Rs 2045.81 crore during the quarter ended December 2021, recording a gain of 5.85%.

Its EBITDA (earnings before interest, tax, depreciation, and amortisation) stood at Rs 314.26 crore, sliding 44.84% from Rs 569.69 crore in December 2021. The company recorded net expenses of Rs 2059.06 crore in Q3FY23 compared to Rs 1708.78 crore in the year-ago quarter. The EPS of Balkrishna Industries reached Rs 5.61 in Q3FY23 as compared to Rs 17.53 in the same quarter last year.

The company's board also declared an interim dividend of Rs 4 per equity share.

“The board has declared 3rd Interim dividend of Rs. 4.00 per Equity Share (200%) on the equity shares of Rs 2/- each (face value) for the financial year 2022-23 and the payment thereof shall be credited/dispatched within 30 days from the date of declaration as per applicable provisions of Companies Act, 2013, to such shareholders as on Record Date i.e. 18th February 2023," the company said in a BSE filing.

At 12.32 pm, the scrip was trading 10% lower at Rs 2,075 on BSE. On a year-to-date basis, the stock has fallen by 3%.

As per Trendlyne data, the highest target price for Balkrishna Industries goes up to Rs 2,600, while the average target price estimate is Rs 2,088, which shows a downside of 1% from the current market price.

The consensus recommendation from 23 analysts for the stock is hold. Out of the 23 analysts covering the stock, 11 have strong buy and buy ratings, six have strong sell and sell ratings, and six have hold ratings.

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