Tyre manufacturer JK Tyre and Industries Ltd announced its financial results for the quarter ended September 2023 on November 1. The company's net profit surged 401% to ₹248.6 crore, up from ₹49.6 crore in the corresponding period in previous year.
The company reported a 4% rise in net revenues at ₹3,905 crore. The tyre major's earnings before interest, taxes, depreciation, and amortisation (EBIDTA) came at ₹597 crore for the quarter under review, up from ₹305 crore in the preceding year.
The margin for the quarter under review came at 15.11%, up from 7.91% in the year-ago period.
Dr. Raghupati Singhania, Chairman and Managing Director said that the company's export sales recorded a healthy double-digit growth as compared to the previous quarter. According to the tyre maker's exchange filing, the company's subsidiaries Cavendish Industries Ltd (CIL) and JK Tornel, Mexico performed well, and contributed significantly to the overall revenues and profitability.
The tyre maker also approved an investment of ₹1,025 crore for manufacturing capacity expansion. According to the company, it will finance the project through combination of equity, internal accruals and debt.
“JK Tyre continues its robust performance in Q2FY24 driving revenues with multifold increase in profitability. The sustained thrust on larger market presence enabled boost volumes across segments and product categories. The strategic focus on enrichment of product mix across the entire Radial range, PCR/LTR/TBR has had positive outcome. Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations," Singhania said.
