- 27 May 2023
- ICICI Securities
Balkrishna Industries Q4 Results 2023: Healthy performance
Balkrishna Industries Ltd | CMP: 3140 | Market Cap: 60,703.47
Balkrishna Industries (BIL) reported healthy set of numbers in Q4FY23 and were a beat to our estimates on the margin front.
Q4FY23 Earnings Summary
View: Balkrishna Industries (BIL) is the leader in the niche tyre segment used in heavy machinery for mining and agriculture purposes and is primarily meant for export markets. Company’s operational performance however has been under pressure in the recent past due to unprecedented rise in RM prices, high export freight rates as well as slow volume off-take in its key export markets. However the current quarter’s margin performance of 20% is encouraging with recovery sooner than management’s guidance of FY24. Going forward, key monitorable from the management call would be their take on the export demand, further gross margin led recovery in margin profile amidst decline in key commodity prices & update on execution of current capex plans.
Impact: Positive