Balkrishna Industries Shares Tumble 8% on Tyre Expansion Plan and Q4 Earnings Miss
Balkrishna Industries' shares dropped 8% following its announcement to enter passenger car and truck tyre segments with a Rs 3,500 crore investment plan over five years. This strategic shift, combined with disappointing Q4 results, has raised investor concerns. Q4 net profit fell 24.30% year-on-year to Rs 368.50 crore, while revenue remained flat at Rs 2,851.70 crore. Analysts express caution over potential margin pressure, execution risks, capital allocation, and impact on the core off-highway tyre business.
26May 25
Balkrishna Industries Shares Plunge 10% as Q4 Results Miss Estimates
Balkrishna Industries reported Q4 results below market expectations. Revenue grew 2.8% YoY to Rs 2,746.60 crore, but EBITDA fell 9.6% to Rs 602.00 crore. EBITDA margin contracted to 21.9% from 24.9%. Net profit dropped 24.7% to Rs 362.00 crore. The disappointing results led to a 10% drop in the company's share price.
Balkrishna Industries, a leading off-highway tire manufacturer, reported Q4 results with a 5% increase in revenue to ₹2,838.00 crore, but a 25% decrease in net profit to ₹362.00 crore. The company announced a final dividend of ₹4.00 per share and plans to invest ₹3,500.00 crore over three years for expansion at its Bhuj facility. Full fiscal year net profit increased by 13% to ₹1,628.00 crore.