710 Per Cent Returns: Multibagger Tyre Manufacturer Posts 47 Per Cent PAT Growth, Sales Up 12.6 Per Cent
The company posted an impressive 47.21 per cent YoY growth in its net profit, which rose to Rs 449 crore in Q3 FY25 from Rs 305 crore in Q3 FY24.
Balkrishna Industries, a global leader in the off-highway tire segment, reported robust financial performance for the third quarter of FY25, with significant growth in net profit and revenue. Despite the strong numbers, the stock faced selling pressure, closing in the red.
Financial Performance
The company’s consolidated revenue from operations grew by 12.58 per cent YoY, reaching Rs 2,560 crore in Q3 FY25, compared to Rs 2,274 crore in the same quarter of the previous year. On a sequential basis, revenue increased by 5.79 per cent QoQ from Rs 2,420 crore in Q2 FY25.
The EBITDA increased by 11.09 per cent YoY, standing at Rs 601 crore in Q3 FY25, up from Rs 541 crore in Q3 FY24. However, the EBITDA margin saw a slight contraction of 30 basis points, settling at 23.48 per cent, compared to 23.8 per cent in the corresponding quarter last year.
The company posted an impressive 47.21 per cent YoY growth in its net profit, which rose to Rs 449 crore in Q3 FY25 from Rs 305 crore in Q3 FY24.
Additionally, Balkrishna Industries declared an interim dividend of Rs 4 per share for its shareholders.
Despite posting strong Quarterly Results, the stock price fell 3.29 per cent, closing at Rs 2,564.90, as midcap and smallcap stocks faced selling pressure.
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Stock Price Performance
Balkrishna Industries’ stock has delivered a 710 per cent return over the last decade. However, in the past year, the stock has declined by 5.36 per cent, underperforming the Nifty 50, which rose by 6.41 per cent during the same period. The company has a market capitalization of Rs 51,271 crore, reflecting its significant presence in the global tire industry.
About the Company
Balkrishna Industries is a global leader in manufacturing off-highway tires, serving specialty segments such as Agricultural, Mining, Construction, Industrial, Earthmover, Port, ATV, and Turf care. With a diverse product portfolio of over 3,200 SKUs, the company holds a 5-6 per cent market share in the global specialty tire market. Balkrishna Industries exports to over 160 countries, catering to a wide range of industries.
Disclaimer: This article is for informational purposes only and not investment advice.