BALKRISIND - Balkrishna Industries Ltd. Share Price

Q&A Section Highlights from the Earnings Conference Call:

Question 1: "What could the factors that led to the rebound in the European market?"

Answer: "I think overall, anticipations of a better season beginning this year likely contributed. Additionally, the destocking that we previously observed has leveled off, which may have facilitated the growth we've seen."

Question 2: "What is the current capex guidance for the full year and the expectations for next year?"

Answer: "We expect to spend about INR300-400 crores more in the current financial year, and the remaining balance will carry over into the next year for our capex."

Question 3: "What is the Euro-INR rate for Q3, and how do you see the hedges ahead?"

Answer: "The Euro rate for Q3 was approximately INR97. Our projections indicate slight improvements ahead, as we are maintaining our hedge policy."

Question 4: "What is the state of the U.S. market in terms of inventory and strategy?"

Answer: "Channel stock appears to be at acceptable levels. However, geopolitical volatility makes future commentary challenging. We aim to regain momentum lost in prior quarters while navigating the tariff issues."

Question 5: "How have European realizations changed amidst higher Euro-INR rates, and what are the expectations for next year?"

Answer: "While European realizations have remained stable, the share from Europe has decreased, affecting overall performance. We maintain forward booking and hedging policies, leading to modest improvements expected next year."

Question 6: "What is the impact of higher domestic market share on ASPs or margins?"

Answer: "Higher domestic shares do have a slightly lower ASP, but despite this, our EBITDA levels remain consistent with previous periods, effectively nullifying the overall effect."

Question 7: "Can you share the percentage of revenue derived from carbon black this quarter?"

Answer: "It is less than 10% of our overall revenue, and we anticipate its growth as we work on client acceptances."

Question 8: "Is there any significant cost in your financials associated with efforts toward CV and PV forays?"

Answer: "There isn't anything significant to highlight in terms of new product development costs that would notably impact our financials."

Question 9: "Will FY '27 capex be similar to FY '26, around INR2,600 crores?"

Answer: "The capex for FY '27 will not exceed what we are committing to this year. About INR2,500-2,600 crores will be spent in FY '26, with the remainder going into FY '27."

These summaries reflect the core inquiries and responses provided during the Q&A session of the earnings call.