Balkrishna Inds at new high

Balkrishna Industries has been hitting new highs consistently for the past few days. And today was no different – it made another new high today at Rs.920.

The tyre company has posted an excellent set of numbers for Q1FY17 and the market has decided to celebrate this to the fullest. Its net profit for the quarter rose 47% (YoY) at Rs.149 crore on a 8% rise in total income at Rs.928 crore.

EBITDA showed a fantastic jump up of over 136% at Rs.260 crore with margins doubling from 12.8% to 28%. Raw material cost, which is mainly rubber, was down during the quarter from Rs.405 crore to Rs.373 crore.

The prices of rubber continue to remain low. End of August, the price of natural rubber hit a 3-month low and with rubber accounting for 40% of total raw material cost, this lower price is sure to show an advantage in the current Q2 also.