Operating performance in line

29 Jan 2024
5 Min read 
  • Balkrishna Industries (BIL) reported 3QFY24 results in line with expectations.
  •  The management has guided for flattish YoY tonnage in 4QFY24 due to ongoing supply chain crisis.
  •  Financials and valuations show a decline in EPS for FY24 but maintain FY25 EPS.
  •  BIL's revenue, EBITDA, and PAT declined YoY in 3QFY24.
  •  The company expects retail demand to improve and does not anticipate any major impact on gross margins.
  •  BIL's carbon black sales are expected to increase in FY25.
  •  The company's valuation reflects its industry-leading margin, FCF, and capital efficiencies.
  •  BIL's market mix is expected to improve towards the US and Europe.
  •  The company has invested in expanding capacity and improving competitiveness.
  •  Earnings growth is expected to pick up, with estimated revenue, EBITDA, and PAT growth over FY23-26E.
  •  Ratios show a gradual improvement in RoE and RoCE.
  •  Cash flow statement shows a positive cash flow from operations and financing activities.
  •  BIL's 3QFY24 results and outlook support a neutral rating on the stock.
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