Balkrishna Industries (502355) Q4 03/04 earnings summary

Executive summary

• Gross turnover and other income rose 21% YoY to Rs. 384.60 crore; PAT increased to Rs. 31.50 crore from Rs. 20.90 crore.

• Tyres drove results, while paperboard sales grew and textile processing remained under pressure; a strike disrupted Aurangabad tyre production.

Financial highlights

• Net turnover and other income was Rs. 368.98 crore versus Rs. 301.59 crore; PBT was Rs. 45.24 crore versus Rs. 28.23 crore.

• Gross profit was Rs. 62.64 crore versus Rs. 40.72 crore; PAT was Rs. 31.50 crore versus Rs. 20.90 crore.

• Sales and related income, net of excise, totaled Rs. 365.21 crore; other income was Rs. 3.77 crore.

Outlook and guidance

• Paperboard remained exposed to intense competition and industry overcapacity; segment growth was expected to exceed 7% annually.

• Tyre business was expected to maintain past growth, with increased capacity and a broader product mix contributing in coming years.

• Textile processing performance was expected to improve in FY04-05.

• Paper exports were expected to increase; no difficulty was anticipated in marketing rising tyre production in export markets.