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This article is more than 6 month old.

Balkrishna Industries shares surge 10% to hit record high on stellar March quarter earnings

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The share price of Balkrishna Industries surged 10 percent to hit a record high on Monday after the company reported robust earnings for the March quarter.

Balkrishna Industries shares surge 10% to hit record high on stellar March quarter earnings
The share price of Balkrishna Industries surged 10 percent to hit a record high on Monday after the company reported robust earnings for the March quarter.
The firm's net profit rose 43.54 percent to Rs 379.95 crore in Q4 as against Rs 264.70 crore during the quarter ended March 2020.
The stock rose 10 percent to hit a new high of Rs 2,084 per share on the BSE.
For the full year, net profit rose 22.7 percent to Rs 1177.53 crore in the year ended March 2021 as against Rs 959.65 crore during the previous year ended March 2020.
The standalone revenue for Q4 came in at Rs 1,746 crore, up 29 percent year on year (YoY), on the back of healthy volume growth. The company said that it has achieved the highest ever quarterly sales volume of 68,002 MT, up 17 percent YoY.
For FY22, the company expects sales volume between 250,000-265,000 MT.
EBITDA margin also improved 254 bps YoY to 31.9 percent from 29.3 percent in the year-ago quarter.
The management sees this demand trend continuing in FY22 but said that there may be COVID-19-related softness.
"For Q4 the demand continues to be robust in the Agriculture segment across Geographies. In the other segments, demand has seen an uptick on the back of increased commodity prices, infrastructure creation and pick-up in economic activity," it said.
The company declared a final dividend of Rs 5 per share for the financial year 2020-21 (FY21), with the total dividend, declared for FY21 including an interim dividend, at Rs 17 per share.
ICICI Securities has a 'buy' call on Balkrishna Industries with a target price of Rs 2,269.
"The firm is likely to benefit from growth tailwinds across both agri and OTR segments," the brokerage said.
 
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