Balkrishna Industries locked in 5% upper circuit after strong Q4 results

Shares of Balkrishna Industries were locked in the 5% upper circuit during the special trading session on Saturday, a day after the company posted strong earnings for the quarter ended March 2024.

In the special trading window launched from 9:15 am to 10:00 am, the tyre manufacturer’s stock opened in the green. The scrip, at the opening bell, was valued at ₹2,788 apiece on the National Stock Exchange (NSE), higher by 4.6% as against the previous day’s close.

Minutes into the trading, the stock zoomed further to clock a 52-week high of ₹2,797.75 apiece on the NSE. At this value, the shares were locked in the 5% upper circuit.

Ahead of the special trading session, the exchanges had noted that there will be a maximum price band of 5% on all securities, including those with derivative products. Securities with a 2% or lower price band will keep their respective bands.

Balkrishna Industries Q4 results

The Mumbai-headquartered company impressed the market by logging an 88% year-on-year increase in net profit to ₹486.8 crore in the March 2024 quarter, as against ₹260 crore in the year-ago period.

The revenue came in at ₹2,682 crore during the quarter under review, marking a jump of 15.7% as compared to ₹2,317 crore in the same period of the previous fiscal.

The earnings before interest, tax, depreciation and amortisation or EBITDA came in at ₹681.2 crore in Q4FY24, up 42% from ₹479.8 crore in Q4FY23. The margin also jumped to 25.4% as compared to 20.7% a year ago.

Balkrishna Industries informed the exchanges that its board has recommended a dividend of ₹4 per equity share, of face value of ₹2 each, for the financial year ended March 31, 2024.

In the past one year period, the company’s stock has rallied by 27.7%, whereas it has grown by 8.6% in 2024 so far.