Balkrishna Industries Q3 Review - Capex Plans Unveiled As Demand Remains Firm: ICICI Securities
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Balkrishna Industries Q3 Review - Capex Plans Unveiled As Demand Remains Firm: ICICI Securities

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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:

ICICI Securities Balkrishna Industries Q3FY21 Results Update.pdf

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