BKT's Revenue and Income Drop in the First Quarter
Balkrishna Industries Ltd. (BKT) posted net income of more than 1.7 billion rupees on net sales of 11.9 billion rupees for its first quarter ended June 30, 2019. That compares to income of 2.3 billion rupees on sales of 13.6 billion rupees for the same period last year.
Based on the exchange rate on June 30, 2019, BKT recorded net income of $25.5 million on net sales of $197.5 million for the first quarter of its fiscal 2020. Its income-to-sales ratio was 14.7%.
The board of directors declared an interim dividend of 2 rupees per equity share.
BKT outlined its next phase of growth in its first-quarter presentation.
* Carbon black plant. The company commenced trial production of Phase 1 of the carbon black project; annual production is 60,000 metric tons. Phase 2, with annual capacity of 80,000 metric tons, will be commissioned in fiscal year 2021.
* Plant modernization/replacement. Modernization of the old Aurangabad (Waluj), India, tire plant, will cost a projected 5 billion rupees (close to $70 million).
* Bhuj plant updates. "Upscaling" the Bhuj, India, plant to large all-steel radial OTR tire production, plus adding a warehouse and mixing plant, will cost up to 5 billion rupees.
The board also announced BKT is putting its U.S. plant project on hold.