Balkrishna Industries Q1 Review - 
Robust Volumes, Margin Contracts QoQ: Systematix

Balkrishna Industries Ltd. (Source: Company website).

Balkrishna Industries Q1 Review - Robust Volumes, Margin Contracts QoQ: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Balkrishna Industries Ltd.'s Q1 FY22 operating performance was ahead of consensus and our estimates as gross margin contraction was offset by strong tonnage growth.

The management indicated that volume momentum in the agriculture segment continues while it is also improving across the industrial segment.

Balkrishna Industries has guided for FY22 volume growth of 250,000-265,000 tonnes (up 10-16% YoY).

It took a price hike of 2-3% in July 2021 to offset raw material inflation and freight costs.

The next leg of capex of Rs 19 billion over the next two years includes-

  1. Rs 8 billion for Bhuj brownfield capacity expansion by 50,000 tonnes per annum,

  2. Rs 6.5 billion for enhancing its carbon black capacity and

  3. Rs 4.5 billion for modernisation and automation, which is on schedule.

Click on the attachment to read the full report:

Systematix Balkrishna Ind Q1FY22 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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