Balkrishna Inds skids

Balkrishna Industries is the top loser on the BSE this morning. The stock price was down over 10% at Rs.964 and volumes jumped up around 3 times. Its 52-week low is at Rs.870.78.

The company actually posted a good set of numbers but what did not go down too well with the traders is trimming down of volume guidance for FY19.

On the earnings front, on a 19% (YoY) rise in revenue at Rs.1325 crore, it posted a net profit of Rs.222 crore, up 9.5%.

Operating profit came in at Rs.333 crore, up 9% while margins saw a contraction from 27.4% to 25.1%.

The company said that for FY19, volume will now come down at 2.1-2.2 lakh MT from the earlier estimation of 2.25 – 2.30 lakh MT.

They have turned cautious on the export market and with 80 to 85% coming from exports, this was not very positive. Industry growth is expected at 4-5% and the sector has been witnessing positive growth but business environment across the globe seems challenging. Geopolitical situation, trade tariffs, rising crude and rising interest costs are the reasons for the challenges.

But they expect growth to come from Indian markets now – currently 15% comes from India and they want to go deeper into India. They want to expand the product range and are looking at working more with existing OEMs rather than look for new OEMs.