Have hiked tyre prices by 7-8%: Balkrishna Industries

In an interview with CNBC-TV18, BK Bansal, CFO, Balkrishna Industries, spoke about the latest happenings in his company and sector.

Here is a verbatim transcript of the exclusive interview with BK Bansal on CNBC-TV18. Also watch the accompanying video.

Q: The last time we spoke with you, you did say that you booked a cost of Rs 90 per kg on rubber prices on account of which you were able to maintain your margins at 25%. Can you tell us right now on account of rubber prices surging so high what is the cost of rubber to you and have you hiked your tyre prices?

A: Currently the rubber prices are ranging between Rs 150-160 per kg. We have been able to pass it on to our customer to some extent, but of course with some kind of time lag.

Q: How much of a quantum of rise have you undertaken on your tyre prices?

A: We have increased price by 7-8% across the board.

Q: While you could pass on, was the cost of rubber to you much cheape? One understood that you have booked it at a lower price, is it true that this quarter your cost of rubber was Rs 90 per kg?

A: Not this quarter, we have already enjoyed that benefit in the first two quarters when our raw material prices were very much at the lower end and thereafter the prices have continuously risen, so the current rubber is at higher cost.

Q: What about your forex entry, you had loss in one quarter, forex gain in another? How are you likely to end this quarter?

A: As far as forex is concerned, what we are booking in our financial statement is the mark to market losses or gain on various foreign currency liabilities that is appearing in our books of account, otherwise we work on forward contract basis wherein we book forward contract in advance and we book our sales as per forward contract rate. Last year, there was a mark to market losses of around Rs 40 crore so that was on account of various foreign currency liabilities that was appearing in our books of account.

(moneycontrol.com)