Balkrishna Industries share price flared up 6 per cent intraday to make a high of Rs 1210 on the NSE on the back of heavy volumes. The scrip of tyre manufacturer is trading close to its record high of Rs 1,280 touched on 2nd December, 2016 in intraday after it posted a robust set of results for the quarter ended September 2016 (Q2FY17). Balkrishna Industries had posted more than double its net profit at Rs 243 cr in Q2FY17 against Rs 106 cr in the same period last year. EBITDA or earnings before interest, tax, depreciation and amortization margin expanded 130 basis points to 32.5 per cent compared to 31.2 per cent last year.
In H1FY17 (April-September), the company had recorded a volume growth at 16 per cent year on year to 85,855 MT. The company expects volume growth to increase to 160-170k in FY17 owing to strong demand from across geography and rising utilization level of Bhuj plant.
Analysts said in a quarterly preview that on the back of the strong 21 per cent volume growth posted in Q2FY17, they expect growth volume growth to be around 17 per cent this quarter. Margins are expected to moderate given the rise in rubber prices.
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