Shares of Balkrishna Industries plunged 11.5% to Rs 2,041 a share in intraday trade on Monday after the tire company’s consolidated net profit for the October-December quarter (Q3FY23) fell 68% year-on-year to Rs 108.38 from Rs 339 crore. The benchmark S&P BSE Sensex was down 0.5% at 10:35 am.

Its operating income increased about 6% to Rs 2,165.57 crore in the third quarter, compared to Rs 2,045.81 crore reported for the quarter that ended December 2021.

Ebitda stood at Rs 314.26 crore, down 44.84% from Rs 569.69 crore in December 2021. Earnings per share fell to Rs 5.61 in the quarter from Rs 17.53 a year ago.

“End demand remains firm, but order pipeline issues continue to impact volumes. As expected, Q3 volumes were 66,480 metric tons. Companies continued to face destocking challenges in Q4. However, the intensity of the situation is fading monthly,” management said in a statement.

Shares of Balkrishna Industries have risen 3% over the past month, compared with gains of less than 1% for the benchmark S&P BSE Sensex.

Balkrishna Industries is one of the world’s leading off-highway tyre (OHT) manufacturers. BKT has the broadest product range with over 3,200 stock-keeping units (SKUs), like “a

“Stop Shop” for all OHT solutions. The company has a 6% global market share in OHT, with 69% of revenue coming from replacement demand.