Company Update : Balkrishna Industries Ltd By Motilal Oswal Financial Services Ltd
Operationally in-line 3Q; PAT beat driven by forex gains
* BKT’s 3QFY25 revenue grew ~11% YoY to INR25.7b (in line).
* Volume during the quarter grew ~5% YoY to 76.3k tons, while realizations improved 6% YoY to INR336.8k per ton.
* Gross margin expanded 40bp YoY while it contracted marginally by 10bp QoQ to 52.4% (est. 52.2%).
* Freight costs increased 200bp YoY/decreased 70bp QoQ to 6.1% of sales. As a result, the EBITDA margin contracted 40bp YoY/20bp QoQ to 24.9% (in line).
* EBITDA grew ~9% YoY at INR6.4b (in line).
* The company reported forex gains of INR1.1b (INR0.5b in 2QFY25). Adj. PAT for the quarter grew 43% YoY at INR4.4b (est. INR3.8b).
* Valuation view: The stock trades at 24.4x/20.5x FY26E/FY27E EPS.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
