Mr Rajiv Poddar, Jt MD & Mr B K Bansal, DF took call.****Key Points by Capital Mkt:
Balkrishna Industries reported 9% increase in the topline and 5% increase in Net Profit for the third quarter ended December 14.For the nine month ended December 14, the company has reported 14% increase in the total income from operations at Rs 2886 crore.
The management saw no change in demand outlook. It has remained same across all geographies.
Market has been very slow in Europe. But the company remains very hopeful about recovery.The company remains focussed on agri segment. But at the same time, it remains also focussed on industrial, construction, and mining segments.
OEM segment constitutes 22-23% of total business and replacement forms the rest 78%.
The company is hedging USD/Re @ 67 for FY 2016-17.
The company is witnessing good sign of pick up in US market across all segments
The company has registered volume growth of 13% ytd this year and next year is hopeful of 10% volume growth.
On segment breakup, 30% are radial tyres for overall company and the rest is bias.
60-65% of agri business tyres are from Europe.
Going ahead, the Bhuj facility would enhance the total capacity to 300,000 MT/year by FY16.With the new capacity in Bhuj likely to cater mainly to the OTR segment, the bulk of BIL's incremental volumes is likely to come from the OTR segment.
The management does not have any hedges for the euro/Rs as of now and is keeping it open as of now waiting for euro to recover.