In This Article:
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Volume Growth: Q2 volumes at 73,298 metric tons, a growth of 4% year on year; H1 volumes at 156,867 metric tons, a growth of 14% year on year.
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Standalone Revenue: Q2 revenue at 2,465 EUR, a growth of 10% year on year; H1 revenue at 5,207 EUR, a growth of 19% year on year.
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EBITDA: Q2 EBITDA at 619 Crores, a growth of 13% year on year.
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EBITDA Margin: Q2 margin at 25.11%; H1 margin at 25.6%.
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Profit After Tax: Q2 profit at 350 EUR, a growth of 4%; H1 profit at 827 EUR, a growth of 28%.
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CapEx: H1 CapEx at 550 Crores.
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Gross Debt: 3,062 Crores as of September 24th.
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Cash and Cash Equivalents: 2,994 Crores.
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Net Debt: Approximately 68 Crores.
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Dividend: Second interim dividend declared, bringing total dividends to INR eight per share.
Release Date: October 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Balkrishna Industries Ltd (BOM:502355) reported a 4% year-on-year growth in volumes for the second quarter and a 14% growth for the first half of the year.
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The company achieved a 10% year-on-year growth in standalone revenue for the second quarter and a 19% growth for the first half of the year.
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The EBITDA for the quarter grew by 13% year-on-year, with a margin of 25.11%, and the first half margin stood at 25.6%.
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The company completed the CapEx for 30,000 metric tons per annum of high-value advanced carbon material, which is expected to contribute to future growth.
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A second interim dividend was declared, bringing the total dividends to INR eight per share for the year.
Negative Points
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Balkrishna Industries Ltd (BOM:502355) is facing weak demand in international markets due to geopolitical tensions and inflationary pressures.
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The company anticipates continued weakness in international markets for the remainder of the year.
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High sea freight costs and inflationary raw material scenarios are impacting the company's cost structure.
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The demand outlook remains uncertain, with no immediate improvement expected in key markets like Europe and North America.
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The company is experiencing challenges in the agricultural segment, which contributes significantly to its revenue.
Q & A Highlights
Q: Can you provide insights on the impact of raw material costs and pricing strategies for the upcoming quarters? A: We implemented a price increase in Q2, which will impact Q3, estimated at about 1% to 2%. The raw material cost increase was around 3% to 4%, with sales price impact being approximately half of that. (Arvind Poddar, Chairman & Managing Director)