Balkrishna Inds on very good roads

Balkrishna Industries had posted a fantastic performance for Q1FY17and it has followed it up with an equally good performance for Q2FY17 too.

Announcing the numbers yesterday after market closure, the company has posted a 129% (YoY) rise in net profit at Rs.243 crore. This was on a 15% increase in total income at Rs.946 crore. The substantial two times rise in other income at Rs.45 crore and forex gain of Rs.59 crore v/s loss of Rs.26 crore also helped the bottomline surge.

The company’s EBITDA came in at Rs.307 crore, up 20% while margins improved from 31.2% to 32.5%.

For FY17, the company has guided a volume of 160,000 MT to 170,000 MT and this seems within reach given the fact that it clocked in a volume of 85,855 MT in H1FY17.

The stock price surged almost 14% intra day at Rs.1130 and remains firmly in the green, up over 10%. Its 52-week high is at Rs.1200.