Balkrishna Industries Q3 Review - Capex Plans Unveiled As Demand Remains Firm: ICICI Securities
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.
ICICI Securities Report
Balkrishna Industries Ltd.’s Q3 FY21 result was a beat on consensus estimates as both volumes and margins surprised positively.
Management has raised volume guidance by 5% to 220,000 in FY21, believes demand in FY22E is likely to remain strong.
Management also shared details of new capex spends Rs 19 billion) over FY22/23E -
1. brownfield project for 50,000 metric tonne capacity (Rs 8 billion),
2. automation, modernisation investment for Bhuj (Rs 4.5 billion),
3. carbon black expansion (Rs 6.5 billion) for both internal use/external sales.
We model-in a capacity utilisation reaching more than 90% in FY23, hence, enhanced capacity would be timely.
Click on the attachment to read the full report:
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.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.