- 29 May 2023
- ICICI Securities
Balkrishna Industries posts healthy set of numbers for Q4FY23
BALKRISIND - 2396 Change: 4.80 (0.20 %)News: Standalone revenues for the quarter were at Rs 2,317.6 crore, up 8.2% QoQ amidst 9.3% QoQ growth in volumes at 72,676 tonne. EBITDA in Q4FY23 was at Rs 470.8 crore with corresponding EBITDA margins at 20.3%, up 831 bps QoQ. Consequent PAT for the quarter came in at Rs 255.6 crore, up 156.5% QoQ. The company announced an final dividend of Rs4/ share with total dividend for FY23 pegged at Rs16/share (~30% payout).
Views: The company posted a heathy set of numbers with margin performance coming as the positive surprise and was higher than out expectations. Gross margin expansion was at ~222 bps QoQ and was further aided by a decline in freight costs. The company generated healthy ~Rs1,400 as CFO for FY23 with scheduled capex spends for the year pegged at ~Rs 1,750 crore. The management commentary suggests high channel inventory now normalising and will return to normal levels by June, July 2023. Key monitorable from the company’s conferecne call would be pace of margin recovery and volume growth prospects.
Impact: Positive