Shares of Balkrishna Industries hit the lower circuit of 10% today after the off highway tyre maker logged a 68% fall in net profit for the quarter ended December.
The company recorded a net profit of Rs 108.38 crore compared to Rs 338.95 crore in Q3FY22. Subsequently, shares of Balkrishna Industries hit an intraday low of Rs 2075.75 against the previous close of Rs 2306.35 on BSE. Earlier, the stock opened 7.65% lower at Rs 2129.95.
The shares are trading higher than the 100 day moving averages but lower than 5 day, 20 day, 50 day and 200 day moving averages. The share has lost 4.67% in a year and fallen 2.44% in 2023.
Market cap of the firm fell to Rs 40,127 crore. Total 0.20 lakh shares amounting to a turnover of Rs 4.16 crore changed hands on BSE.
The stock hit a 52-week high of Rs 2451 on August 3, 2022 and a 52-week low of Rs 1681.95 on March 7, 2022.
Revenue from operations of the firm climbed 5.85% to Rs 2165.57 crore for the quarter ended December 2022 as against Rs 2045.81 crore during the quarter ended December 2022. The company recorded net expenses of Rs 2059.06 crore in Q3FY23 compared to Rs 1708.78 crore in the year-ago quarter. EBITDA fell 41% to Rs 269.29 crore in Q3 against Rs 456.65 crore in the December quarter of the previous fiscal.
Meanwhile, the firm has announced an interim dividend of Rs 4 per share.
“The Board has declared 3rd Interim dividend of Rs. 4.00 per Equity Share (200%) on the Equity Shares of Rs. 2/- each (face value) for the financial year 2022-23 and the payment thereof shall be credited/dispatched within 30 days from the date of declaration as per applicable provisions of Companies Act, 2013, to such shareholders as on Record Date i.e. 18th February, 2023," said Balkrishna Industries in a stock exchange filing.
In terms of technicals, the relative strength index (RSI) of the firm is 62, signaling it's trading neither in the oversold territory nor overbought territory. The stock has a beta of 0.9 indicating low volatility in a year. It has a price to equity ratio of 31.57 against the industry average of 21.57.
Mumbai-based Balkrishna Industries is engaged in offering pneumatic tires. The company offers tires, tubes and tire flaps. It focuses on manufacture of a range of off-highway tires (OHT). These tires are mainly meant for agricultural, industrial and construction, earthmover and port, mining, forestry, lawn and garden and all-terrain vehicles (ATV).
Its products include AGRIMAX RT 855, PL 801, EARTHMAX SR 41, EM 934, AGRIMAX TERIS and EARTHMAX SR 30, among others.
Also read: Ambuja Cements, Adani Ports shares out of ASM framework. This is what it means