|Balkrishna Industries held a conference call on 31 May 2013. Mr Arvind Poddar, MD and Mr Rajeev Poddar, ED took the queries in the call.
Key Points of the call:
For FY 13, the company's revenue was of Rs 3,191 crore, YoY growth of 13.1%. 6% was due to volume growth. Rest was due to price and mix change.
FY 13 EBITDA was of Rs 664 crore, YoY increase of 31.4%. Profit after Tax of Rs 356 crore, growth of 32.5% YoY.
Some signs of recovery are being seen at major markets. Macro economic picture is looking much better. In Europe, East Europe is showing recovery.
There was partial commissioning of Bhujplant in September 2012. Ramp up to take place in a phased manner as below
- FY 13 â10,000 MT
- FY 14 â60,000 MT
- FY 15 â120,000 MT
- Rs 1,422 crore is incurred till March 2013
- Rs 528 crore Capitalized till March 2013
In FY 13 in tonnage terms, the company did 138339 MT, a growth of 3.4%.
Guidance for FY 14 is around 145,000 - 150,000 MT (growth of 7-10%). It indicates a capacity utilization around 72%.
The company is trying to enter OEM segment and signs are very encouraging.
Post Bhuj expansion, BKT's tonnage will be 276,000 MT per annum
Natural Rubber is moving in broad range. It is expected to remain steady.
The company currently holds inventory of 2-2.5 months.
Profit increase in FY 13 was due to cost reduction and increased realization.
Staff cost increased q-o-q as the company started partial production at Bhuj.
FY 13 sales breakup: Replacement market was 81%. OEM was 15% and rest off take was 4%.
Production no for FY 13 139392 MT and for Q4 it was 32573 MT
The company has order book of around 20-25 K MT (45 days).
For FY 13-14, there will be Rs 10-12 crore additional interest cost. Depreciation will go up by 80-90 cr.
Geography wise breakup for FY 13 - Europe 46%, America 25%, India - 8-9%.
Gross block (Net) is Rs 1276 crore. Work in progress is around Rs 950 crore.
Regarding US Market from agricultural point of view, the company says that it is improving.
The mining segment is doing well. The capacity addition at Bhuj will be mainly for this segment. It will be large tyre all steel. In mining, it will be 80% replacement and 20% OEM.
In India also, the company is targeting the mining segment. Coal India etc are its customers.