Balkrishna Industries (502355) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 saw strong volume and revenue growth, with Q2 volume up 4% YoY and H1 up 14% YoY, despite global macro challenges such as recession fears, geopolitical tensions, inflationary costs, and high freight expenses.

• EBITDA increased 13% YoY in Q2 and 29% YoY in H1, with margins at 25.1% and 25.6% respectively.

• Net profit rose 4% YoY in Q2 and 28% YoY in H1.

• Interim dividend of Rs. 4 per share declared for Q2, totaling Rs. 8 per share YTD.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved and reviewed by the Board and auditors.

Financial highlights

• Q2 revenue: Rs. 2,465 crore (+10% YoY); H1 revenue: Rs. 5,207 crore (+19% YoY).

• Q2 EBITDA: Rs. 619 crore (+13% YoY); H1 EBITDA: Rs. 1,333 crore (+29% YoY); margin at 25.1% in Q2 and 25.6% in H1.

• Q2 net profit: Rs. 350 crore (+4% YoY); H1 net profit: Rs. 827 crore (+28% YoY).

• Consolidated revenue for Q2 FY25 was Rs. 241,974 lakhs, up from Rs. 225,319 lakhs in Q2 FY24.

• PAT margin for H1 FY25 at 15.9% vs 14.8% YoY.

Outlook and guidance

• International market weakness expected to persist for the rest of FY25; minor sales volume growth still anticipated.

• Full-year EBITDA margin expected around 25%.

• CapEx guidance for FY25 updated to INR 800–1,000 crore.

• First phase of the new Off Road Tires project (17,500 MTPA) expected to be completed by H1 FY25-26.