Indian tyre manufacturing firm on Friday reported standalone revenues at INR 2,646.28 crore for Q2 FY23, up 45.96% from INR 1,813.07 crore in Q1 FY23.
The firm’s quarterly web revenue stood at INR 319.74 crore in June 2022, down 3.46% from INR 331.20 crore in June 2021.
“We continue to see a sustained uptick in demand for BKT tires. However, in Q2, we expect sluggish demand given macro challenges in Europe coupled with heat waves and inflationary trends in the USA,” Balkrishna Industries stated. However, the administration retained its gross sales quantity steering of three.2-3.3 lakh tonnes for FY23.
EBITDA for the quarter stood at INR 557.78 crore for Q1 FY23 in June 2022 down 5.6% YoY.
In Q1 FY23, EBITDA margin contracted 910 foundation factors (bps) year-on-year (y-o-y) to twenty.1% and gross margins declined 380 bps y-o-y. One foundation level is 0.01%. What’s extra, the street forward will not be clean for the corporate so far as this parameter is worried.
According to an organization regulatory submitting, the uncooked materials costs have remained at elevated ranges through the present quarter. In Q1FY23, uncooked materials prices have been at 46.6% of gross sales in contrast with 42.8% in Q1 FY22 and 45.3% in This fall FY22. However, it expects reduction in uncooked materials costs to be seen from This fall FY23 onwards. It additionally expects reduction in logistics prices in direction of the tip of Q3 or early This fall.
Further, in Q1 FY23, the corporate took a worth hike of 5%, however in Q2 thus far it has been unable to lift product costs as a result of the market situations have been difficult, hampering its capability to go on the burden of elevated prices.
Meanwhile, there is no such thing as a excellent news on the demand entrance, as nicely. In Q1 FY23, its volumes grew 21% y-o-y to 83,153 mt and the corporate has guided for gross sales volumes of 320,000-330,000 mt in FY23, the tyre-maker reported.
The tyre producer, nevertheless, expects demand to be sluggish in Q2 FY23 as a result of macro challenges in Europe, warmth waves, and inflationary traits within the US market.
Profit earlier than tax stood at INR 50 crore registering 40% progress, towards INR 27 crore within the prior 12 months, the corporate stated in a regulatory submitting.
Balkrishna Industries has an excellent export presence as 83% of FY22 volumes for the corporate got here from exports. The firm has a powerful presence in Europe, contributing to 51.6% of the full income. According to the corporate’s latest earnings name, the worldwide market share of the corporate was about 5%-6%. In segmental gross sales, the agriculture segments had the bulk share of 65.5% in volumes for FY22.