BKT reports double-digit sales, earnings growth

MUMBAI, India—Balkrishna Industries Ltd. (BKT) reported double-digit growth in earnings and sales revenue for the fiscal year ended March 31, and management is forecasting double-digit volume growth for fiscal 2022-23.

Pre-tax operating income grew 20.6 percent to $287.6 million on 46.6 percent higher revenue of $1.15 billion, BKT reported, yielding a slightly lower operating ratio of 25 percent. Net income was up 21.9 percent to $188.7 million.

BKT did not publish an earnings expectation for the current fiscal year but did say it expects sales volumes to increase roughly 12-15 percent to 320,000 to 330,000 metric tons.

Revenue in the Americas grew 66 percent to $199 million, and BKT identified growing its business in the U.S. a priority for the current fiscal year, along with expanding the product portfolio, strengthening its market position in India and enhance capacity utilization.

BKT recently initiated the production of radial agricultural tires at its 7-year-old plant in Bhuj, India, where annual manufacturing capacity is expected to reach 50,000 metric tons this year.

The new production capacity is part of a $257 million investment package to increase capacity at plants in India, including the large OTR factory in Bhuj and a new factory being built in Waluj.

BKT's board of directors, however, have put on hold a capex investment of $46 million announced in November 2021 for the Waluj, India, so that operations at this plant can continue uninterrupted and cater to strong demand.