Despite an increase of 181.71 percent in net profit, the share prices of this leading off-highway tyre company dropped by 7.05 percent on Thursday to Rs. 2,523.05, after the company announced its financial results for Q3 FY23-24, that is, for the quarter ended December 2023.
With a market cap of Rs. 49,178 crore, shares of Balkrishna Industries Ltd opened at Rs. 2,710 on January 25 from its previous close of Rs. 2,714.55. During the trading session on January 20, the shares of the company hit a new all-time high at Rs. 2,795.5.
The company has delivered nearly 5.75 percent returns in the last six months, whereas it has given more than 12.5 percent in the last one year. So far, it has given negative returns of around 1.64 percent in 2024.
The fluctuations in the share prices were observed after the company announced its financial results on January 24, for the third quarter and nine months ended 31st December 2023, through a recent filing with the stock exchanges.
As per the recent filings in the stock exchanges, Balakrishna Industries has reported a 181.71 percent year-on-year increase in the net profit at Rs. 305.4 crore for Q3 FY23-24 compared to Rs. 108.4 crore in Q3 FY22-23.
The company’s revenue from operations grew by 5 percent to Rs. 2,274.4 crore in Q3 FY23-24 from Rs. 2,165.6 crore in Q3 FY22-23.
While the earnings before interest, tax, depreciation, and amortisation or EBITDA stood at Rs. 540.6 crore in Q3 FY23-24 as against Rs. 269.3 crore in Q3 FY22-23, the EBITDA margin stood at 23.8 percent as compared to 12.4 percent during the same period.
On a quarterly basis, the net profit margin reduced from 14.72 percent in the September 2023 quarter to 13.05 percent in the December 2023 quarter, however, the operating margin increased from 16.52 percent in the September 2023 to 16.70 percent in the December 2023 quarter.
The company has announced their third interim dividend of Rs. 4 per equity share on the equity shares of Rs. 2 each for the FY23-24, and the payment will be dispatched or credited within 30 days from the date of declaration.
For over three decades, Balkrishna Industries has been engaged in manufacturing tires for a range of specialist sectors, including the agricultural, construction, earthmoving, port and mining industries.
Written by Shivani Singh
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