Balkrishna posts muted set of Q1FY23 numbersBALKRISIND - 2572 Change: -33.20 (-1.27 %)
News: Standalone revenues for the quarter stood at Rs 2,646 crore, up 11.5% QoQ amidst 7.8% QoQ growth in volumes at 83,153 tonne. EBITDA in Q1FY23 stood at Rs 455.5 crore with corresponding EBITDA margins at 17.2%, down 380 bps QoQ. Consequent PAT for the quarter came in at Rs 319.7 crore, down 14% QoQ.
View: Company begins the year on muted note. Margin performance was the real damper and was //lowest in the recent past. Gross margin erosion was sharp at ~150 bps QoQ while other expenses (driven by higher freight costs) were up ~210 bps QoQ. Management commentary suggests Q2FY23 to be weak (QoQ decline) amidst sluggish demand prospects in Europe and US. It also expects high logistics costs to taper Q3FY23 onwards while RM costs is expected to provide some relief starting Q4FY23. It however retained its sales volume guidance of 3.2-3.3 lakh tonne for FY23.