Balkrishna Industries Ltd. shares declined sharply by over 10% following the release of its fourth quarter results, which fell short of market expectations.
The company's standalone revenue for the fourth quarter increased by 2.8% year-over-year to Rs 2,746.6 crore, slightly above Bloomberg's estimate of Rs 2,716.5 crore.
Earnings before interest, taxes, depreciation, and amortisation fell by 9.6% to Rs 602 crore, missing Bloomberg's estimate of Rs 691 crore. The Ebitda margin also contracted to 21.9% from 24.9% in the previous year, well below the estimated 25.4%.
Balkrishna Industries' net profit dropped by 24.7% to Rs 362 crore, compared to Rs 481 crore in Q4 FY24. This figure was also below Bloomberg's estimate of Rs 448.5 crore.
Balkrishna Industries Share Price Today
The scrip fell as much as 10.42% to Rs 2,383 apiece. It pared losses to trade 8.09% lower at Rs 2,445 apiece, as of 10:25 a.m. This compares to a 0.65% advance in the NSE Nifty 50 Index.
It has fallen 21.18% in the last 12 months. Total traded volume so far in the day stood at 28 times its 30-day average. The relative strength index was at 33.
Out of 22 analysts tracking the company, six maintain a 'buy' rating, six recommend a 'hold' and 10 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an downside of 2.1%.
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