Balkrishna Industries Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

Strong operating performance; outlook remains cautious

KRChoksey

For Q1FY25, BIL reported robust revenue of INR 27,145 Mn (+25.7% YoY, +1.2%QoQ), which outperformed our estimates.
Gross margin for the quarter expanded by 47 bps YoY (-88 bps QoQ) to 52.3%.

Broker Report

Decent Q1; capacity additions on cards

Sharekhan

A 4.7% beat in topline resulted in in-line EBITDA, though PAT was 14.3% above estimates on higherthan-expected other income.

Broker Report

Margin improvement largely priced in; downgrade to Reduce

KRChoksey

For Q4FY24, Balkrishna Industries (BKT) reported robust revenue of INR 26,819 Mn, a growth of 15.7% YoY/ 17.9% QoQ. The reported revenue was outperformed our estimated.

Broker Report

Balkrishna Industries

ICICI Direct

Broker Report

Balkrishna Industries Limited

Keynote Capitals Ltd

Quarterly Update Q4FY24

Broker Report

Strong beat, upgrade to BUY

Sharekhan

Strong earnings beat on robust volume growth (+12.8% q-o-q), healthy realisations (+3.9% q-o-q), and sharp gross margin expansion (+160bps q-o-q). Revenue and EBITDA exceeded estimates by 16.2% and 18.2%, respectively.

Broker Report

Volumes improve sequentially in Q3, however, to be impacted in the near term

KRChoksey

For Q3FY24, BIL reported consolidated revenue of INR 22,744 Mn, a growth of 5.0% YoY/ 0.9% QoQ. The underlying standalone volumes for the quarter were at 72,749 MT, reporting a growth of 9.4% YoY/ 3.1% QoQ.

Broker Report

Balkrishna Industries Limited

Keynote Capitals Ltd

Quarterly Update Q3FY24

Broker Report

Performance improvement expected in H2FY24E

KRChoksey

For Q2FY24, BIL reported consolidated revenue of INR 22,532 Mn, a decline of 15.2% YoY but an improvement of 4.3% QoQ. The underlying volumes for the quarter were at 70,585 MT, reporting a decline of 10.5% YoY but an improvement of 5.0% QoQ. The volumes saw the benefit of postponement of deliveries from Q1FY24 to Q2FY24 due to the disruptive impact of cyclone Biparjoy.

Broker Report

Volume recovery key ahead under current valuation levels

ICICI Securities Limited

Balkrishna Industries (BIL)’s Q2FY24 EBITDAM, at 24.4%, was up 170bps QoQ driven by a combination of lower raw material basket (RMB) cost, better product mix and favourable hedge rate. Post-inventory destocking at the dealer level in the last few quarters, inventory is now at normalised levels of 2-3 months, from highs of ~4 months.

Broker Report

Balkrishna Ind

Sharekhan

Broker Report

Balkrishna Industries Limited

Keynote Capitals Ltd

Quarterly Update Q2FY24

Broker Report

Sequential improvement in overall performance

Motilal Oswal

Broker Report

Favourable base gets initiated; to turn more favourable from CY24

ICICI Securities Limited

Indian OHT exports in Aug’23 improved 4%/1% MoM/YoY and now is back in line with average monthly exports in CY23. Agri segment exports increased 6% MoM to ~USD 90mn as against OTR segment’s exports being at their highest in CY23 at USD 52mn, flat MoM. With export base reducing substantially from Aug’23, YoY, industry has shifted from a declining trajectory to a growing one.

Broker Report

Export base to turn favourable from coming months

ICICI Securities Limited

Indian OHT exports improved sequentially by 12% in Jul’23 (in line with average monthly exports in CY23), though were down ~20% YoY. Agri segment exports increased 4% MoM to ~USD 85mn as against OTR segment exports at their highest in CY23 at USD 52mn, up 27% MoM.

Broker Report

Weakest month of OHT exports since destocking started a year back

ICICI Securities Limited

Weakness in OHT exports from India intensified in Jun’23 and touched their lowest in past 2 years, down 30% YoY to USD 122mn. This was due to continued weak demand, impact of cyclone in Gujarat and deflationary pricing. A week’s production loss from the leader with an average market share of 50%, implies overall exports got hit by ~12.5% -- adjusted for which, it was largely in line with past 6-month average export level.

Broker Report

Balkrishna Industries Limited

Keynote Capitals Ltd

Quarterly Update Q1FY24

Broker Report

Profitability recovers; volume to remain flat in FY24

ICICI Securities Limited

Balkrishna Industries’ (BIL) Q1FY24 EBITDAM at 22.7% was up 240bps QoQ, driven by a combination of lower raw material basket (RMB) cost, better product mix, lower freight cost and favourable hedge rate. BIL is confident of improving its global OHT market share from ~6% now to ~10% in 4 years and would do the due capex when needed to scale up.

Broker Report

Balkrishna Industries

ICICI Direct

Broker Report

In final stages of adverse base and destocking

ICICI Securities Limited

Indian OHT exports improved sequentially by ~3% in May’23, though were down ~10% YoY. We believe industry would witness steep cuts YoY in Jun-Jul’23 on elevated base, post which the base would turn favourable along with inventory levels of distributors coming down to desirable levels of ~50-60 days by then.