Balkrishna Industries shares jump 10% after strong volumes drive Q1 results

Shares of Balkrishna Industries Ltd. jumped as much as 10% on Thursday, July 30, after the tyre maker reported a strong set of first-quarter earnings, aided by robust volume growth that offset margin pressure. The stock is seeing its biggest single-day gain in five months.

The company outperformed peers on the back of healthy demand, with volumes rising 16% year-on-year, ahead of management’s guidance of a 10-12% increase.

Strong volume growth helped drive a 24% jump in revenue during the quarter, while operating margins came in broadly in line with expectations despite moderating from a year ago.

For the June quarter, revenue rose 24% to ₹3,409 crore from ₹2,759 crore a year earlier. EBITDA increased 7% to ₹703 crore from ₹656 crore, while EBITDA margin narrowed to 20.6% from 23.8%.

The Off-Highway Tyres (OHT) business contributed 90% of total volumes during the quarter, while the carbon black segment accounted for the remaining 10%.

The company also reiterated its long-term ambition of achieving 2.2x revenue growth by 2030.