Balkrishna Industries: Volume jumps 61 per cent QoQ in Q2FY21

Balkrishna Industries declared the results for the quarter ended September 30, 2020, on Friday after the market hours.

The company’s consolidated revenue for the quarter Q2FY21 stood at Rs 1,577.9 crore as against Rs 1,084.28 crore in the corresponding quarter last year, registering a 45.5 per cent YoY increase.

On the volumes’ front, the company reported the highest-ever quarterly sales volume in Q2FY21. Besides, it registered a significant jump of 60.71 per cent QoQ to 61,224 MT in Q2FY21 vs 38,096 in Q1FY21. On a YoY basis, volumes jumped by 36 per cent. With 99,320 MT of volume achieved in H1FY21, the company expects to cross the FY20 sales volumes in FY21, being marginally subjective to no further deterioration caused by COVID-19.

EBITDA for the quarter spiked by 97.8 per cent YoY to Rs 539.97 crore as against Rs 273.04 crore in the corresponding quarter last year, with a corresponding margin expansion of 904 bps. EBITDA margin for the quarter stood at 34.2 per cent.

PAT for the quarter came in at Rs 340.94 crore as against Rs 294.31 crore in the corresponding quarter last year, with a YoY increase of 15.8 per cent.

As far as demand is concerned, it continued to be strong in the agricultural segment across different geographies. In other segments, the demand continued to remain stable.

The board of directors has declared a second interim dividend of Rs 4 per equity share.

In today’s trading session, the stock of Balkrishna Industries opened at Rs 1,479.25, up by 2 per cent from its previous close of Rs 1,452.50. However, the price did not sustain and declined by 4 per cent, making an intraday low of Rs 1,389 on BSE.