{"id":155203,"date":"2023-10-24T07:07:38","date_gmt":"2023-10-24T11:07:38","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155203"},"modified":"2023-10-24T07:10:09","modified_gmt":"2023-10-24T11:10:09","slug":"balkrishna-industries-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/balkrishna-industries-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Balkrishna Industries Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Balkrishna Industries Ltd (BALKRISIND) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Results and Performance<\/strong>\n<ul>\n<li>Revenue INR2247 crore, EBITDA INR548 crore with 24.4% margin, PAT INR335 crore.<\/li>\n<li>For H1, 45% sales from Europe, 29% from India, 17% from Americas.<\/li>\n<li>Q2 faced challenges due to heatwaves and recessionary fears in export markets.<\/li>\n<li>Inventory-related challenges normalized, but confidence in distribution channels is still moderate.<\/li>\n<li>India market continued to perform relatively better.<\/li>\n<li>Q2 volumes partly from inventory created in June that couldn&#8217;t be shipped due to disruptions.<\/li>\n<li>Expect stable volumes but de-growth in FY24 due to H1 challenges.<\/li>\n<li>Operating margins declined due to higher employee expenses, power and fuel costs, and other expenses.<\/li>\n<li>Profitability was impacted by inflationary pressures on costs as well as muted growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex and Expansion<\/strong>\n<ul>\n<li>Planned capex of INR600 crore for FY24, with INR 250-300 crore for maintenance.<\/li>\n<li>Decided to set up new mould plant at Bhuj instead of expanding Dombivali plant.<\/li>\n<li>New plant at Bhuj a standalone project with capex of INR300 crore and is to be commercialized by end of Q1 FY25.<\/li>\n<li>Total FY25 capex now at about INR 900 crore.<\/li>\n<li>Advanced Carbon black project to be commissioned in H2FY24.<\/li>\n<li>Carbon black project to generate INR400-600 crore revenue at full capacity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Demand Environment<\/strong>\n<ul>\n<li>Seeing gradual recovery in Europe, but uncertainty due to geopolitics.<\/li>\n<li>Strong growth continuing in India across agri and OTR segments.<\/li>\n<li>Overall global demand likely to decline marginally in FY23.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Expansion<\/strong>\n<ul>\n<li>Brownfields allow faster implementation in 15-18 months.<\/li>\n<li>To support new products like large OTR and solid tires.<\/li>\n<li>No immediate need seen given utilization levels.<\/li>\n<li>Truck and bus radial capacity expansion is underway and expected to be completed by Q4 FY23.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Market Share<\/strong>\n<ul>\n<li>Current share is 4-5% globally and in India.<\/li>\n<li>Aiming to increase it to 10% over time in India in the medium term.<\/li>\n<li>Has strong presence in regions like Punjab and Haryana and working to increase presence and market share in other regions as well.<\/li>\n<li>Growth to come from new products like solid tires and tracks.<\/li>\n<li>Entered two-wheeler segment this year, received good response from OEMs.<\/li>\n<li>Expects international markets to pick up in H2 FY24.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pricing Actions and Margin Outlook<\/strong>\n<ul>\n<li>Raw material costs likely to remain stable or see minor increases.<\/li>\n<li>Continuing to take price hikes to offset commodity cost inflation.<\/li>\n<li>Have not taken any price hikes this quarter due to lag effect of RM price changes.<\/li>\n<li>Will reconsider price hikes if there are sharp RM price movements.<\/li>\n<li>Taking actions to maintain EBITDA margin between 26-28%.<\/li>\n<li>Expect margins to remain sustained at current levels.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Markets<\/strong>\n<ul>\n<li>International markets facing headwinds from geopolitical tensions and uncertainty.<\/li>\n<li>Performance in Americas and rest of the world has been declining over the past few quarters.<\/li>\n<li>Company waiting to see how international markets progress before providing clarity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Balkrishna Industries Ltd (BALKRISIND) Q2 FY24 Earnings Concall Financial Results and Performance Revenue INR2247 crore, EBITDA INR548 crore with 24.4% margin, PAT INR335 crore. For H1, 45% sales from Europe, 29% from India, 17% from Americas. Q2 faced challenges due to heatwaves and recessionary fears in export markets. Inventory-related challenges normalized, but [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,9044,9753],"class_list":["post-155203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-industrial-products","tag-tyres"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":172066,"url":"https:\/\/alphastreet.com\/india\/balkrishna-industries-q2-fy26-earnings-results\/","url_meta":{"origin":155203,"position":0},"title":"Balkrishna Industries\u00a0Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"November 3, 2025","format":false,"excerpt":"Balkrishna Industries Ltd (BKT), a leading manufacturer of off-highway tyres for agricultural, industrial, and construction applications, reported a challenging quarter in Q2 FY26. Financial Summary: Revenues declined 1.12% year on year to \u20b92,393 crore from \u20b92,420 crore. Total expenses rose 2.98% to \u20b92,108 crore from \u20b92,047 crore, reflecting higher input\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Q2 FY26","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/BLIND.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":155584,"url":"https:\/\/alphastreet.com\/india\/praj-industries-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155203,"position":1},"title":"Praj Industries Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 1, 2023","format":false,"excerpt":"Key highlights from Praj Industries Ltd (PRAJIND) Q2 FY24 Earnings Concall Order Book and Outlook Total order book for Q2 was INR10.63 billion, with 71% from domestic market. Share of order book - Bioenergy 68%, Engineering 22%, PHS 10%. Backlog as of Sep 2023 stood at INR39.6 billion comprising 74%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":156203,"url":"https:\/\/alphastreet.com\/india\/puravankara-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155203,"position":2},"title":"Puravankara Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 14, 2023","format":false,"excerpt":"Key highlights from Puravankara Ltd (PURVA) Q2 FY24 Earnings Concall Business Performance Achieved highest ever quarterly sales value of INR1,600 crores in Q2 FY24, a 102% increase from INR791 crores in Q2 FY23. 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