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Balkrishna Industries Ltd. — Investor Presentation 2025
Jan 25, 2025
62235_rns_2025-01-25_ed5d03d7-bceb-49aa-8d33-bee3ea5fa959.pdf
Investor Presentation
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January’25
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BALKRISHNA INDUSTRIES LTD. Investor Presentation
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Safe Harbor
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This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the tire industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Performance Snapshot – Q3FY25
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Sales Volume
76,343 MT
+5% YoY
EBITDA
Rs. 639 cr
+9% YoY
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Revenue
Rs. 2,571 cr
+11% YoY
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EBITDA Margin
24.85%
-52bps YoY
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Net Profit
Rs. 439 cr
+42% YoY
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Dividend
Rs. 4/- per equity share
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All Figures on Standalone basis
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- 3[rd] nterim Dividend
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Performance Snapshot – 9MFY25
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Sales Volume
233,211 MT
+11% YoY
EBITDA
Rs. 1,979 cr
+22% YoY
Net Profit
Rs. 1,266 cr
+32% YoY
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Revenue
Rs. 7,778 cr
+16% YoY
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EBITDA Margin
25.44%
+115 bps YoY
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Dividend
Rs. 12/- per equity share
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All Figures on Standalone basis
- Total of 1[st,] 2[nd] and 3[rd] Interim Dividend
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Sales Volume Profile
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3,01,181
2,92,628
233,211
2,88,795
2,27,131
FY23 FY24FY24
9MFY25
FY22
FY21
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Sales volumes in MT
All Figures on Standalone basis
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Volume Profile
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Segmental Sales Channel Sales
3.4% 1.5%
25.2%
37.6%
9MFY25 9MFY25
59.0%
73.3%
Agriculture OTR Others Replacement OEM Others
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Geographical Sales
12.1%
42.6%
9MFY25
28.9%
16.4%
Europe Americas India RoW
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All Figures on Standalone basis
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Profit & Loss
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| Particulars (Rs in Cr) | Standalone | Standalone | Standalone | Standalone | Standalone | Standalone | |
|---|---|---|---|---|---|---|---|
| Q3FY25 | Q3FY24 | YoY | 9MFY25 | 9MFY24 | YoY | FY24 | |
| Sales(MT) | 76,343 72,749 5% 2,33,211 2,10,543 11% 2,92,628 |
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| Revenue from Operations Realized Gain on Foreign Exchange |
2,541 2,280 7,666 6,626 9,299 31 36 111 53 77 |
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| Total Income | 2,571 2,316 11% 7,778 6,678 16% 9,375 |
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| Raw Material (Increase) / Decrease in Stock Employee Expenses Other Expenses |
1,300 1,115 3,767 3,270 4,521 -77 -3 -88 -55 -47 131 114 366 331 441 578 504 1,755 1,511 2,138 |
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| EBITDA | 639 588 9% 1,979 1,622 22% 2,322 |
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| EBITDA Margin Other Income Unrealized Gain / (Loss) Interest & Finance Charges (Net) Depreciation |
24.8% 25.4% 25.4% 24.3% 24.8% 24 71 211 189 275 112 -53 65 5 55 15 35 76 79 109 171 159 497 471 644 |
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| Profit Before Tax | 589 411 43% 1,681 1,265 33% 1,899 |
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| Tax | 150 102 415 309 461 |
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| Profit After Tax | 439 309 42% 1,266 957 32% 1,438 |
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| PAT Margin | 17.1% 13.3% 16.3% 14.3% 15.3% |
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Balance Sheet
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| GROWING TOGETHER Balance Sheet |
GROWING TOGETHER Balance Sheet |
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| Particulars (Rs. Cr.) Sep’24 Mar’24 ASSETS Non-current assets 9,131 9,012 Property, Plant and Equipment 6,289 6,204 Capital work-in-progress 866 944 Investment Property 62 64 Other Tangible Assets 0 1 Right of use Assets 15 15 Financial Assets (i) Investments 1,326 1,338 (ii) Other Financial Assets 92 155 Income Tax Assets (Net) - 15 Other non-current assets 480 277 Current assets 5,308 4,593 Inventories 1,594 1,271 Financial Assets (i) Investments 1,574 1,349 (ii) Trade Receivables 1,476 1,543 (iii) Cash and cash equivalents 89 47 (iv) Bank Balances other than (iii) above 5 5 (v) Loans 9 7 (vi) Others 81 70 Other Current Assets 480 301 TOTAL 14,439 13,605 |
Particulars (Rs. Cr.) Sep’24 Mar’24 |
| EQUITY AND LIABILITIES | |
| EQUITY 9,404 8,862 |
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| Equity Share Capital 39 39 Other Equity 9,366 8,823 |
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| Non-Current Liabilities 1,132 1,162 |
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| Financial Liabilities (i)Borrowings 561 691 (ii)Other Financial Liabilities 119 16 Provisions 34 30 Deferred Tax Liabilities (Net) 328 349 Other Non-Current Liabilities 90 75 |
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| Current liabilities 3,903 3,581 |
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| Financial Liabilities (i) Borrowings 2,501 2,345 (ii) Trade Payables 921 893 (iii) Other Financial Liabilities 157 156 Other Current Liabilities 293 182 Provisions 5 4 Tax Liabilities 26 - |
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| TOTAL 14,439 13,605 |
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All Figures on Standalone basis
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Cash Flow
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| Particulars (Rs. Cr.) | H1FY25 | FY24 |
|---|---|---|
| Operating profit before working capital changes | 1,345 | 2,307 |
| Changes in working capital | -283 | 163 |
| Cash generated from operations | 1,062 | 2,470 |
| Direct taxes paid (net of refund) and others | -203 | -418 |
| Net Cash from Operating Activities | 859 | 2,052 |
| Net Cash from Investing Activities | -569 | -1,468 |
| Net Cash from Financing Activities | -249 | -568 |
| Net Change in cash and cash equivalents | 42 | 17 |
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All Figures on Standalone basis
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Resilient Business Model
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Gross Cash and Cash equivalents of Rs. 2,942 Cr as on 31[st] December, 2024
Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires
Self Reliant in Carbon Black along with Multiple sourcing arrangements for other Raw Materials
Total Achievable capacity of ~360,000 MT p.a.
BKT has built a resilient business model and is confident to withstand the near-term challenges to emerge stronger with a higher global market share
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Strategy at BKT
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Balkrishna Industries – A Snapshot
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Leading ‘Off-Highway Tire” Exporter
BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market
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Wide and comprehensive product portfolio
Deep understanding of OHT market has led to capabilities to manufacture over 3,200 SKUs
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Capacities
The current tire achievable capacity is 360,000 MTPA The current carbon black achievable capacity is 200,000 MTPA including 30,000 MTPA high value Advanced Carbon material
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Global reach
Sales to over 160 countries through Distribution network in Americas, Europe, India and Rest of the World
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Strong OEM Presence
Strong Partnerships with Global OEM’s a testimony of our Brand Acceptance & Performance
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Experienced Management Team
Experienced Management Teams across business divisions and verticals
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India Production and Global Sales
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Waluj,
Maharashtra
Bhiwadi,
Rajasthan
Chopanki,
India
Rajasthan
Our Manufacturing Base
Bhuj,
Gujarat
Mould plant,
Dombivali
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Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
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Serving Global OEMs…
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The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only
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Business Practices Driving Long-Term Sustainability
Energy Efficiency
Environment
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To ensure energy efficiency Initiated use of ‘Green –
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Energy’ installing 5MW windmills and 2 MW solar power plants for our greenfield projects
- Controlled emissions through electrostatic precipitators in boilers and discharge through appropriate effluent treatment plants
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40MW Captive Power Plant Capacity
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Installed 66TPH tail gas boiler received from carbon black plant thus recycling waste gases & reducing coal consumption
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Planted approximately 1,00,000 trees in and around Bhuj plant
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Installation of power management system to increase power generation from turbine set
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Waste Management
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Implemented disciplined waste management system for systematic collection of scrap and safe storage/disposal, re-use of wastes
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Promoted industrial recycling of waste like reclaim rubber, crumb powder and rubberized friction compound
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Usage of Jumbo plastic bags replaced by mobile silos for carbon black transfer to Tire plants
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Foldable container usage for carbon black transfer to other tire plants
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Promoting Education, Health & Rural Development
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Our Endeavour is to improve the lives of children and adults, and our mission is to ensure health with dignity to every underprivileged children and adult
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BKT – A Strong Global Brand from INDIA
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Strengthening BKT Brand : Americas
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BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its fleet of Monster Trucks – Monster Jam is a top sporting event in America
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Strengthening BKT Brand : Canada
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BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup
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Strengthening BKT Brand: Spain, Europe
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BKT is the Official Global Partner for the Spanish Football League “La Liga”
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Strengthening BKT Brand: Italy, Europe
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BKT is the Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT”
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Strengthening BKT Brand: France, Europe
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BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France
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Strengthening BKT Brand : EUROPE
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Premium Partner of EUROLEAGUE BASKETBALL
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Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE
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Team of expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’
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Strengthening BKT Brand
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Official Tire Partner of Six Nations Rugby spanning the Guinness Men’s and Guinness Women’s Six Nations
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Strengthening BKT Brand : Australia
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BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE)
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Strengthening BKT Brand : India
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Official Partner of Teams in the Cricket T20 League for Season 17
The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only
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Strengthening BKT Brand : India
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Click here for the BKT Video
Ranveer Singh is the Brand Ambassador of BKT
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Thank You
Company Investor Relations Advisor Balkrishna Industries Ltd. CIN - L99999MH1961PLC012185 Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. M S. Bajaj - Senior President & Director Mr. Shogun Jain (Commercial) & CFO [email protected] [email protected] +91 77383 77756 [email protected] www.bkt-tires.com www.sgapl.net
All images, texts and graphics contained in this document are the copyright of BKT. Permission to print hard copies of this material and to share it with interested people is granted unless otherwise provided by the Author of the document. It is forbidden to extract parts of the presentation without the express consent of the author. Balkrishna Industries Limited (BKT) cannot be held responsible for any incorrect data contained in this document. Any other form of reproduction, electronic or otherwise, as well as the application of any changes, partially or entirely, to images, texts, graphs and data is strictly prohibited without prior written permission from BKT. Balkrishna Industries Limited (BKT) reserves itself the right to alter any details contained in the document without prior notice.