JK Tyre and Industries Q3 results: Profit rises three-fold to Rs 221 cr

JK Tyre & Industries posted more than a three-fold year-on-year (Y-o-Y) increase in their net profit during the third quarter of 2023-24 to Rs 221 crore, riding on product premiumisation, better product mix, and volume expansion. The company posted a 2.07 per cent increase in its consolidated revenue from operations, which came in at Rs 3,687.72 crore.

On a sequential basis, the company exhibited a 5.39 per cent decline in revenue along with PAT, which also declined by 8.79 per cent. The EBITDA grew by 61 per cent year-on-year, reaching Rs 563 crore.

Based on the company's performance, the Board has made the decision to declare an interim dividend of Rs 1 per equity share, representing 50 per cent of the face value, which is Rs 2 per share for the financial year 2023–24.

Raghupati Singhania, the Chairman and MD at JK Tyre & Industries stated that the demand outlook remains optimistic, driven by strong momentum in economic activity and positive consumer sentiments, across product categories. "The global demand scenario is still challenging due to geo-political disturbances affecting exports during the quarter," he added.

Anuj Kathuria, President (India), JK Tyre & Industries said that the EBITDA margin of 15.2 per cent for the quarter was driven by a better product mix and improved PCR (passenger car radial tyre) share. Kathuria added, "The PAT and revenue decline in a sequential manner is an industry-wide phenomenon. Overall demand, especially from OEMs, has been muted, impacting both OEM volumes and replacement demand."

Profit & Loss Statement (Rs. Crs.)	Q3FY24	Q3FY23	% Change YoY	Q2FY24	% Change QoQ
Revenue from operations	3,688	3,613	2.07 %	3,898	-5.39%
PAT	220.92	65.59	237.43%	242.11	-8.79%

This quarter, JK Tyre & Industries secured Rs 500 crore through a Qualified Institutional Placement (QIP) issuance. The QIP, priced at Rs. 345 per share, attracted interest from marquee investors including Indian mutual funds, insurance companies, and foreign institutional investors.

The company also reduced its net debt by 24 per cent, reaching Rs 3,456 crore from the levels reported in March 2023.

"We're working on a capacity expansion program, targeting completion in the next 2-3 months. Further capital expenditure of Rs 1,400 crore is planned for PCR (passenger car radial tyre), TBR (truck, bus and radial tyre), and all-steel light truck radial segments, which is expected to be in place by October 2025," Kathuria said.

JK Tyre & Industries' share price rose by 0.59 per cent, ending the day's trade at Rs 535.35 apiece on the BSE.