Financial Reporting

and Analysis
Indian Tire Industry

Chinmay Ambaselkar PGP34012

Kanupriya Sethi PGP34019
Rakesh V PGP34032
Sunil Dudi PGP34045
Syed Mohammed Nadeem PGP34047
Vaaswee PGP34048
Indian Tire Industry
Background
The Indian tyre industry which contributes about 3% of India’s manufacturing GDP is
embracing new trends in the manufacturing processes owing to growing insistence on lower
emissions and better fuel efficiency. Latest trends in the industry include finer tolerances in the
manufacturing process, inclusion of more radials which consume less fuel, low rolling resistance
and focus on better traction and on road performance which increases fuel efficiency. At this
juncture, the Indian tyre industry forms an interesting case for analysis and hence is the topic
of study for the project.
Factors that impact the industry
Trade agreements
Free trade and regional trade agreements play a crucial factor in shaping global trade.
Currently, India has these agreements with countries where there is low export potential.
Pushing for trade agreements with top export destinations like the US and EU countries can
help boost the tyre industry. Currently, these countries provide concessional tariffs to countries
such as China and Korea, but tyre exports from India to these countries attract heavy duties,
thereby reducing its competitiveness.
Physical infrastructure
Improvement in physical infrastructure by mobilising funds from long term investments can go
a long way in improving the efficiency of the tyre industry. It needs to be developed by
facilitating land acquisition and rationalising labour and tax laws. Lack of regular power supply
acts as a major constraint to this industry.
Tax rationalisation
Due to significantly higher tax rates on profit in India (33% v/s ~20% in other developing
countries) reduces the competitiveness of the Indian tyre industry. Further, the complexity of
tax regime adds to the problem. Rationalising direct tax in relation to international benchmarks
and ensuring more transparency are essential.
Ease of trading across borders
Time and money cost for exports are higher than that faced by other developing countries.
Though several steps have been taken by the Indian government to address this issue, more
measures would help improve India’s ranking in “ease of trading” and also the competitiveness
of the tyre industry.
R&D support
The Indian tyre industry produces tyres suitable for all weather and terrain conditions. To
ensure To ensure industry competitiveness with global peers, necessary policy support for R&D
is required. Currently, weighted tax deduction for R&D expenditure (200% under section
35(2AB) of IT Act 1961) for in-house R&D facility and 175% for weighted deduction on
outsourced R&D is allowed from approved institutions. These benefits must be continued and
can be extended to outsourced R&D expenditure as well.
Strong intellectual property regime
There’s a steadily growing market for counterfeit and smuggled goods. To ensure that
manufacturer’s rights are protected, the government needs to enforce a stronger intellectual
property (IP) protection regime through a cohesive framework without overlap or
inconsistencies among different ministries. This will help augment the tyre industry’s growth
by driving investments in R&D and boosting innovation.
Industry Outlook
The economic outlook for India in the coming years bodes well for the tyre industry. There is a
strong linkage between India’s growing services sector (~10% annually) and automobile
demand. Large percent of young Indian population in the services sector is expected to add to
the demand for vehicles and hence tyres. The road infrastructure is witnessing rapid
development and this is another factor that would boost the prospects of domestic automobile
and tyre industries. Some of the legislations that may impact the growth of the tyre sector
indirectly are:
1. Ban of 10+ year old diesel vehicles in Delhi and Kerala
2. GST implementation
3. Shift from BS IV to BS VI norms by 2020
Several prominent analysts have pegged the growth of the tyre industry at ~8% annually over
the next 3 years. This is driven by high demand from Original Equipment Manufacturers
(OEMs) and stable replacement demand. However, there are several concerns of this industry
that need to be addressed. Import of rubber attracts 25% duty which is the highest in the world
and this will hurt the margins of manufacturers. Rampant dumping of Chinese tyres in the
domestic market also needs to be addressed.
Key Market Players
Some of the major players in the Indian tyre industry including Balkrishna Industries are MRF,
Apollo Tyres, CEAT, JK Tyre and Goodyear. As per market capitalisation and net profit figures,
MRF leads the race with Balkrishna Industries in the second position in both the categories.
MRF currently has a market capitalisation of Rs. 30,251.61 Crores and that for Balkrishna
Industries is Rs. 22,638.41 Crores. Rest of the companies lie below the Rs. 15,000 Crore mark.
In FY2018, MRF and Balkrishna Industries have clocked in Rs. 1092.28 Crores and Rs. 739.25
Crores net profits respectively. Apollo tyres comes a close third with Rs. 622.39 Crores net profit
figure.
Business Model
The primary sources of revenue for the tyre industry include sales to Original Equipment
Manufacturers (OEMs), wheel replacements and exports. The tyre industry is both capital and
labor intensive. Majority of the costs (65-70%) are due to raw material. The following graph
depicts the margins in the tyre industry based on 9 listed players.
Industry Cost Structure
Raw material cost account for 65-70% of the total cost of production of tyres. The main raw
materials used to manufacture tyres are natural rubber, polybutadiene rubber (PBR), styrene
butadiene rubber (SBR) and nylon tyre cord fabric.
Rubber including (natural and synthetic), nylon tyre cord fabric (NTC) and carbon black
constitute a significant portion i.e. ~60-65% of the overall raw material cost of the industry.
Hence any change in the prices of these materials impact the overall industry’s profitability
Rubber is a major component in manufacturing of a tyre. There are three categories of rubber
used in the manufacturing process viz natural rubber (NR), styrene butadiene rubber (SBR)
and poly butadiene rubber (PBR). Natural rubber forms around 70% of the total rubber content.

Product Categories
The domestic tyre industry is in modernization phase and largely driven by demand and supply
conditions, rather than government regulation as it was earlier. The domestic tyre industry can
be classified on the basis of its design, markets and vehicle category, which have been evolved
over the years.
Markets
Tyre demand in India is from two categories i.e., OEMs and the replacement .Consumption by
OEMs is dependent on new automobile sales trend while the replacement segment is linked to
usage patterns and replacement cycles.
Demand from the replacement segment dominates the Indian tyre market contributing about
56% of demand. The major reason for high replacement share is due to the fact that the number
of registered vehicles/annual sales remains at about 10x at close to 20 crore registered vehicles
(industry estimates) visà-vis ~2.4 crore annual vehicle sales.
The export category is about 18% of the total units sold in the domestic market. The industry
registered sales of around 151,026 (000 units) in the domestic market while the total exports of
tyres during the year was 26,699 (000 units) in 2015-16. Therefore, the total tyre sales during
the year was 177,724 (000 units) registering a marginal growth of about 4% y-o-y.
PESTEL Analysis
• Political- The custom duty rate on tyres is 10-15% where as custom duty on Natural
Rubber is 31.35%. Thus, making it hard to compete with external competitors.
• Economic - As the rupee is getting devalued the cost of raw materials in increasing. Thus,
leading to pressure on profit margins and also to increase in price of tyres. The rupee
reached all time low 71.92% on 5th September 2018
• Social - Explosion in the number of the nuclear families has lead to rapid growth in the
automobile industry and also tyre industry
• Technical - As more and more international companies have entered indian market.
They are spending huge on solving technological problems and technological
enhancement. Further , this has lead to adoption of radial tyres in india in last few years.
 • Environmental- Disposal of scrap tyres is about to become the latest headache of the
industry. New ways to be found to dispose or reuse the scarp tyres.
• Legal- Excise duty on tyres is high. Ultimately consumers have to pay more price. Tyre
industry is also delicensed.

Major Accounting Policies in Tire Industry

The Ministry of Corporate affairs has, in February 2015, laid out a road map for IFRS
convergence in India by notifying the transition plan and issuing 39 converged standards known
as Indian Accounting Standards or Ind AS. Under the road map, from 1 April 2016, Ind AS
would be mandatory for (a) companies having a net worth of INR500 crore or more and (b)
associate companies, holding, subsidiaries, joint ventures or associate companies of such
companies. Further, from 1 April 2017, Ind AS would be mandatory for (a) companies whose
equity and/or debt securities are listed or are in the process of being listed on any stock exchange
in India or outside and having net worth of less than INR500 crore (b) unlisted companies
having net worth of INR250 crore or more but less than INR500 crore; and (c) associate
companies, holding, subsidiaries, and/or joint venture of such companies. The notification has a
fairly wide coverage as it impacts not just the covered entity, but all entities within the
consolidated group to which the entity belongs.
The adoption of Ind AS is expected to be a paradigm shift in financial reporting. As a
consequence, the reported earnings (net income) and financial position (net worth) reported by
companies adopting Ind AS is likely to undergo a change. Impact of this change would vary from
company to company, with some sectors/companies being significantly impacted. We expect the
adoption of Ind AS to lead to changes in the key metrics of the automotive sector.
The accounting and disclosure requirements for legal/disputed cases are largely driven by AS
29, Provisions, Contingent Liabilities and Contingent Assets. Each case presents unique facts
and circumstances and hence, there cannot be a single answer. While evaluating each case,
companies may seek inputs from legal counsel on interpretation of the provisions of law.
The key accounting policies followed by Balkrishna Industries include:
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
Revenue from sale of goods is recognised when the significant risks and rewards in respect of
ownership of products are transferred by the Company, the entity retains neither continuing
managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold and no significant uncertainty exist regarding the amount of consideration
that will be derived from the sale of goods as well as regarding its ultimate collection.
The Company recognizes revenue when the amount of revenue can be reliably measured, it is
probable that future economic benefits will flow to the entity.
Property, Plant and Equipment
Freehold land is carried at historical cost. All other items of PPE are measured at cost less
accumulated depreciation and any accumulated impairment losses, if any. The cost of PP&E
comprises of:
Its purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates.
Any costs directly attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management.
Income and expenses related to the incidental operations, not necessary to bring the item to the
location and condition necessary for it to be capable of operating in the manner intended by
management, are recognised in profit or loss.
The Company has elected to continue with the carrying value of all its property, plant and
equipment as recognized in the consolidated financial statements as at the date of transition to
Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition
date pursuant to the exemption under Ind AS 101.
Any gain or loss on disposal of an item of PPE is recognised in profit and loss.
Depreciation
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less
its estimated residual value.
Depreciation on PPE (other than leasehold land) is provided based on useful life of the assets in
accordance with Schedule II to the Companies Act, 2013, on Straight Line Method except in
respect of Plant and Equipment where the useful life is considered differently based on an
independent technical evaluation as 10 to 15 years.
Leasehold land are amortised over the lease period.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
Inventories
Raw materials, packing materials and stores, work in progress, traded and finished goods are
stated at the lower of cost and net realisable value, cost is calculated on moving weighted
average basis.
In respect of finished goods, cost includes materials, appropriate share of utilities, other
overheads and applicable excise duty.
Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs necessary to make the sale.

Competitors
Balkrishna Industries
Headquartered in Mumbai, Balkrishna Industries Limited (BKT) is a leading manufacturer in
the Off-Highway tire market. Balkrishna Industries Ltd was incorporated on November 20
1961. The company set up its first plant at Aurangabad. The company focuses on the production
of range of off-highway tires that includes agricultural industry material handling forestry lawn
and garden construction and earth moving tires.
BKT sells its products in 130 countries worldwide through a network of national distributors.
The company has a worldwide distribution network ensuring extensive reach and penetration.
The company derives majority of its revenue from exports. The company has five state-of-the-
art production sites in Aurangabad, Bhiwadi, Chopanki, Dombivali, and Bhuj.
The company has four subsidiaries in Europe and North America viz. BKT Europe S.r.l. in
Seregno Italy BKT Tires USA Inc. in Akron Ohio BKT Tires Canada Inc. in Toronto and BKT
Tires Inc. Its subsidiaries in India are Balkrishna Paper Mills, Balkrishna Synthetics and
Balkrishna Tires.
Over 95% of the tire production is exported under the BKT brand, with the main export markets
being countries in Western Europe, North America and Australasia including original
equipment manufacturers. In the domestic market, the company supplies to all the major
construction equipment manufacturers and has a presence in the replacement market of the
road construction sector.
Being India’s largest exporter of “Off –Highway Tyers”, the company exports ~92% of its topline
to diverse geographies including Europe, South America, Latin America, Africa, Russia, Asia
etc. It has a market presence in over 130 countries. Supported by a strong distribution network
of more than 200 distributors, BIL has a product portfolio of 1900 SKUs to offer.
Balkrishna Industries Ltd. is a large cap company having a market cap of Rs 22,638 Crore
operating in Tyres sector. Balkrishna’s key products/revenue segments include
• Tyres which contributed Rs 3,722 Crore (98.25 % of Total Sales)
• Export Incentives which contributed Rs 57.24 Crore (1.51 % of Total Sales)
• Scrap which contributed Rs 7.51 Crore (0.19 % of Total Sales)
• Other Operating Revenue which contributed Rs 1.41 Crore (0.03 % of Total Sales) for the
year ending 31-Mar-2017.
JK Tyres & Industries Ltd.
JK Tyre & Industries Ltd was incorporated in the year 1951 as a private limited under the name
JK Industries Pvt Ltd. Until March 31, 1970, the company was engaged in the managing agency
business. Thereafter the company decided to undertake manufacturing activities and obtained
a letter of intent in February 1972 for the manufacture of automobile tyres and tubes. The
company name was changed into JK Industries LTD with effect from May 24, 1974 consequent
upon conversion of the company into a public limited company.
JK Tyre & Industries Ltd is one of the leading automotive tyre manufacturers in India. The
company is engaged in manufacturing of automobile tyres, tubes and flaps. They manufacture
Radial and Bias 4-wheeler tyres for trucks, buses passenger cars, LCVs, tractors etc. The
company's customer base covers virtually the entire Original Equipment Manufacturers in
India together with Replacement Market for four wheeler vehicles, Defense and State Transport
Units. They sell their products under the brand name 'JK Tyre'.
They have four plants located in Rajasthan, Madhya Pradesh and Karnataka. The company
markets its products and services through a network of approximately 300 JK Steel Wheels
retail outlets, approximately 60 JK Xpress Wheels retail outlets, and 40 JK Truck Wheels retail
outlets, as well as 28 JK Retread Centers and 17 Tyre care centers. It also exports its products
to North America, Latin America, Africa, and the Middle East.
Apollo Tyres Limited
Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of
manufacture and sale of tyres since its inception in 1972. The company has manufacturing
presence in Asia, Europe and Africa, with 8 modern tyre facilities and exports to over 100
countries. Powered by its key brands — Apollo and Vredestein, the company offers a
comprehensive product portfolio that includes passenger car, sports utility vehicle, multi utility
vehicle, light truck, truck-bus, agriculture, industrial, two wheeler, specialty, bicycle, and off
highway tires; retreading materials and tires; and alloy wheels.
They are the first Indian tyre company to launch exclusive branded outlets for truck tyres and
also the first Indian company to introduce radial tyres for the farm category. Apollo Tyres
currently has four manufacturing facilities in India -- two (including a leased facility) in the
rubber-producing state of Kerala and one each in Gujarat and Tamil Nadu. Outside India the
company has a manufacturing facility each in The Netherlands and Hungary.
They are the first Indian tyre company to launch exclusive branded outlets for truck tyres and
also the first Indian company to introduce radial tyres for the farm category. Apollo Tyres
currently has four manufacturing facilities in India - two (including a leased facility) in the
rubber-producing state of Kerala and one each in Gujarat and Tamil Nadu. Outside India the
company has a manufacturing facility each in The Netherlands and Hungary.
Financial Statement Analysis
Profitability Ratios
The term profitability means the profit earning capacity of any business. Profitability ratios
measure a company’s ability to use its capital or assets to generate profits. Improving
profitability is a constant challenge for all companies and their management. Evaluating
profitability ratios is a key component in determining the success of a company.
EBITDA Margin
For a manufacturing industry, the EBITDA margin measures the operational profitability of a
company. EBITDA margins are important because they help evaluate the company’s
performance without having to factor in financing decisions. Balkrishna Industries has clearly
out-done its competitors in terms of margin, primarily attributed to its core revenue derived
from foreign operations where it sells for higher prices while producing at domestic level at low
labour costs and other costs.

EBITDA Margin
36% 37%
40% 32%
25% 27%
30%

20%

10%

0%
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Net Income Margin

Net income margin measures the net profitability of a company after deducting all possible
expenses except dividends to shareholders. It establishes a relationship between net profit and
sales and also indicates management’s efficiency in manufacturing, administering and selling
of products. Balkrishna Industries has again been the best performer amongst peers with far
higher margins.

Net Income Margin

25%
19%
20% 18% 17%
14% 13%
15%
10%
5%
0%
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Return on Equity
Return on equity is the measure of book returns earned by shareholders on their investments.
Preferred shares and dividend yields are excluded from the calculation. Return on equity is the
net income of business as a percentage of the total equity of the business. Balkrishna Industries
has provided investors ROE in line with peers but has witnessed a declining trend over years.
Since the company in the last two years has paid out higher dividends, it leaves behind lesser
income. Although the company has maintained its net income margin, the decline in ROE could
then be attributed to the increase in dividend payments.

Return on Equity
30% 26%
25% 21% 20% 20%
18%
20%
15%
10%
5%
0%
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Return on Capital Employed (ROCE)

Return on capital employed is the total return earned on both debt and equity. Capital comprises
of both debt and equity and ROCE measured the net earnings of the business generated from
the total capital. It is a measure of the profitability and efficiency of business in utilising its
capital and generating better returns for its owners. Over the last five years, Balkrishna
industries has significantly improved its ROCE attributable to the paydown of debt reducing
the total capital while maintaining the levels of earning.

Return on Capital Employed

30% 26% 25%
25%
20% 15%
13% 13%
15%
10%
5%
0%
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Return on Assets
Return on assets measures how efficiently a company can manage its assets to produce profits
during a period. Naturally, a higher ratio would be preferred. Balkrishna Industries again has
been in line or outperformed its peers in the last five years.

Return on Assets
14% 12% 13%
12% 10% 11%
9%
10%
8%
6%
4%
2%
0%
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Liquidity Ratios
Liquidity is the measure of a company’s ability to repay its debts in the short-term (one year)
and have enough cash and cash equivalents to run its operations smoothly. Hence these ratios
will focus on the current assets and the current liabilities. Current assets can generally be
converted into cash (liquidated) within 12 months of year-end and similarly, current liabilities
are debts that must generally be settled within 12 months of year-end. These ratios give an
indication of management’s operational capabilities regarding the management of working
capital.
Current Ratio
The current ratio is a liquidity and efficiency ratio that measures a firm’s ability to pay off its
short-term liabilities with its current assets. The current ratio is an important measure of
liquidity because short-term liabilities are due within the next year. This means that a company
has a limited amount of time in order to raise the funds to pay for these liabilities. Current
assets like cash, cash equivalents, and marketable securities can easily be converted into cash
in the short term. This means that companies with larger amounts of current assets will more
easily be able to pay off current liabilities when they become due without having to sell off long-
term, revenue generating assets. Balkrishna Industries has a current ratio of more than 1.0x
indicating the business if sound enough to manage its current liabilities. The current ratio for
the company has been in line with the peers over the last five years.

Current Ratio
2.0x
1.4x 1.4x
1.5x 1.3x
1.1x 1.1x
1.0x

0.5x

0.0x
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Quick Ratio
The quick ratio is a liquidity ratio that measures the ability of a company to pay its current
liabilities when they come due with only quick assets. Quick assets are current assets that can
be converted to cash within 90 days or in the short-term. Cash, cash equivalents, short-term
investments or marketable securities, and current accounts receivable are considered quick
assets. Short-term investments or marketable securities include trading securities and
available for sale securities that can easily be converted into cash within the next 90 days.
Marketable securities are traded on an open market with a known price and readily available
buyers. In terms of quick ratio again Balkrishna Industries has maintained a ratio better than
the peers however near about 1.0x. A ratio close to 1.0x or lower indicates that in times of
distress, the company might not be able to provide for all its current liabilities with its quick
assets. This may not be a favourable scenario.
 Quick Ratio
1.1x
1.2x 1.0x
1.0x 0.8x 0.9x
0.8x
0.8x
0.6x
0.4x
0.2x
0.0x
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Solvency Ratios
Solvency means the company’s ability to repay its debts in the long-term. The ratios are
therefore not restricted to the current assets and current liabilities but rather deal with the
total assets and total liabilities.
The solvency ratios give an estimate of the structural safety of the company by calculating the
ratio of internally sourced finance to externally sourced finance. Internally sourced finance is
more expensive but yet a low risk source of finance (owners’ ordinary or preference share capital)
versus externally sourced finance, which is cheaper but yet a riskier source of finance (loans
from the bank, debentures etc.).
It assesses the company’s ability to meet its long-term obligations, remain solvent, and avoid
bankruptcy. It measures how well a company’s cash flow covers its short-term financial
obligations. Lenders evaluate these ratios to determine the degree to which a company could
become vulnerable when faced with economic downturns. A company with a high level of debt
poses a higher risk to lenders and investors.
Total Debt to Equity
Debt/Equity Ratio is a debt ratio used to measure a company’s financial leverage, calculated by
dividing a company’s total liabilities by its stockholders’ equity. It is closely monitored by
lenders and creditors, since it can provide early warning that an organization is so overwhelmed
by debt that it is unable to meet its payment obligations. This form of D/E may often be referred
to as gearing. Balkrishna Industries has maintained a safe debt to equity ratio declining over
time. This is indicative of the decrease in debt as the company has repaid its long-term debt
over the years.

Total Debt to Equity

3.0x
2.5x
2.0x
1.2x
1.5x
0.9x
1.0x 0.5x
0.2x 0.2x
0.5x
0.0x
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Turnover Ratios
Generally, turn over ratios indicate the operating efficiency of a business. These are used to
measure the speed with which various accounts are converted into sales or cash. The higher the
ratio, the higher the degree of efficiency.
Asset Turnover Ratio
Asset turnover ratio indicates the level of sales generated by the fixed assets of the company. It
calculates the revenue earned per one Rupee of investment in fixed assets. It tells us how
effectively and efficiently a company is using its fixed assets to generate revenues. If a company
has a high fixed asset turnover ratio, it shows that the company is efficient at utilising its fixed
assets to generate revenues. Fixed assets are important because they usually represent the
largest component of total assets. A higher ratio means the company is more efficient. An
increasing trend in fixed assets turnover ratio is desirable because it means that the company
has less money tied up in fixed assets for each unit of sales. A declining trend in fixed asset
turnover may mean that the company is over investing in the property, plant and equipment.
Asset turnover ratio at Balkrishna Industries has improved over the years, indicating
improvement in operational efficiency and ability to generate more revenue per rupee unit of
fixed assets. The company has now been able to come in line with its peers from an earlier lower
turnover relative to peers.

Asset Turnover Ratio

200.0x

150.0x

100.0x

50.0x 73.4x 76.1x

71.1x 64.8x
60.3x
0.0x
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo

Inventory Turnover Ratio

Inventory turnover ratio indicates the number of times inventory is turned over in a defined
period of time. It is suggestive of how efficient a company converts its inventory into sales. Low
inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of return
of zero. A low turnover rate can indicate weak sales, possible overstocking, and obsolescence,
but it may also reflect a planned inventory build-up in the case of material shortages or in
anticipation of rapidly rising prices. High inventory turnover ratio implies either strong sales
or ineffective buying (the company buys too often in small quantities, therefore the buying price
is higher). A high inventory turnover ratio can indicate better liquidity, but it can also indicate
a shortage or inadequate inventory levels, which may lead to a loss in business. Balkrishna
Industries has maintained its inventory turnover in line with the peers with an average
turnover of 8.6x, meaning it converts its inventory into cash in a cycle of every 42 days.
 Inventory Turnover Ratio
11.3x
12.0x 9.6x
10.0x 8.1x
7.5x
8.0x 6.8x

6.0x
4.0x
2.0x
0.0x
2014 2015 2016 2017 2018

Balkrishna JKTyres Apollo