Analyst Presentation

Q3 FY 2011 Result Update January 2011

Safe Harbor
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Standalone Tire Business : Financial Highlights - Q3 FY2011

Rs.Crs
Sales (MT) Revenue Raw Material Employee Expenses

Q3 FY11
27,825 496 302 13

Q3FY10
21,303 347 168 11

YoY %
31% 43%

Q2 FY11
26,532 476 287 13

QoQ %
4% 4%

Other Expenses
EBITDA EBITDA Margin Exchange (Gain)/Loss Interest Depreciation PBT

93
88 17.8% 2 11* 19 57

81
87 25% -6 4 17 72 1%

86
91 19.1% -7 3 19 76 -3%

Tax
PAT PAT Margin

18
38 7.7%

25
48 13.7% -20%

25
51 10.7% -25%

* Includes Rs.8 Cr Redemption Premium on FCCB

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Standalone Tire Business : Financial Highlights 9M FY2011

Rs.Crs Sales (MT) Revenue Raw Material Employee Expenses Other Expenses EBITDA EBITDA Margin Exchange (Gain)/Loss Interest Depreciation PBT Tax PAT PAT Margin 9M FY11 80,959 1,430 857 38 264 271 18.9% -1 18* 56 199 65 134 9.3% 9M FY10 59,174 952 433 31 218 269 28.3% -14 15 49 220 75 145 15.3% -8% 1% YoY % 37% 50% FY10 84,454 1,395 673 42 300 380 27% -18 19 66 314 105 209 15.0%

* Includes Rs.8 Cr Redemption Premium on FCCB 4

Sales Volume Break-up : 9M FY 2011

Geography Wise
RoW 10%
Asia 20% America 22% Europe 48%

Segment Wise
Others 6%

OTR 29% Agricultur e 65%

Channel Wise
Off-Take 6% OEM 13% Distribut ors; 81%

Strong Order Book

34,000 MT equivalent to 3.5 months of Sales Volume

Guidance for FY 2011 : Sales of Tires ~ 100,000 - 110,000 MT & EBITDA margin in the range of 18% - 19%
5

Increase in Natural Rubber Prices largely offset

Natural Rubber Price Movement in 2010
250

200
Rs/Kg

150

100

~ 50 % rise in Natural Rubber Prices

Natural Rubber Constitutes 32% of Raw-Material Composition Major Rubber producing countries facing erratic climatic conditions More of Speculation, Less of demand

Ability to offset substantial cost increase by Price hikes

Three Product Price Hikes in last one year, resulted in 20-25% increase in prices Production requirement covered till May 11
6

Rubber Inventory/ Forward Contract

supply Mismatch

Corporate Update

Split of Equity Shares

Face value reduced from Rs.10 to Rs.2 effective from Dec 10 Total outstanding shares 96,658,595

Redemption of FCCB - USD 24 Mn in Dec 10

Including USD 2 Mn paid towards redemption premium

Brownfield Expansion to be completed by Jun 11

To increase achievable production capacity to 130,000 MT

Spent Rs. 70 Crs. through Internal Accruals out of total project cost of Rs. 200 Crs.

Greenfield expansion at Bhuj progressing as per schedule

To add achievable production capacity by 90,000 MT

Estimated Project cost of Rs. 1,200 Crs Debt of USD 175 mn tied-up, to be drawn in phases

For further information, please contact:

Company : Balakrishna Industries Ltd. Mr. B K Bansal, Director - Finance ir@bkt-tires.com Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Mr. Gaurang Vasani vgaurang@sgapl.net

www.bkt-tires.com

www.sgapl.net