Tyre maker Balkrishna Industries FY23 volume, margin seen under pressure

Company's near term will be tough, but brokerages believe it will continue to gain market share

From its highs in August, the stock of Balkrishna Industries is down about 12 per cent. India’s largest listed tyre maker by market capitalisation dropped on account of weak margin performance in the June quarter (Q1FY23) and macro challenges. Some brokerages have cut their earnings per share estimates by as much as a fifth for FY23 to reflect the pressure on volumes and margins.

While the near-term outlook remains uncertain, demand in the June quarter was strong with the firm’s revenues rising 11 per cent sequentially. This was led by an 8 per cent growth in overall volumes and the