Balkrishna Industries skids 6% on disappointing margin performance in Q1

The management commentary suggests Q2FY23 to be weak (QoQ decline) due to sluggish demand prospects in Europe and US.

Shares of Balkrishna Industries dropped 6 per cent to Rs 2,190 on the BSE in Friday’s intra-day trade. The stock extended its two day decline after the company reported disappointing margin performance, due to higher raw material prices, for the quarter ended June 2022 (Q1FY23).

In the past three trading days, the stock of tyres & rubber products company slipped 10 per cent. In comparison, the S&P BSE Sensex was up 0.37 per cent at 58,515 points at 09:43 am.

In Q1FY23, the company’s reported standalone earnings before interest, taxes, depreciation, and amortization (Ebitda) margins down 550 basis