JK Tyre records net profit surge of nearly five-fold to Rs 242 cr in Q2FY24

Tyre manufacturer JK Tyre reported a nearly five-fold surge year-on-year (Y-o-Y) in its consolidated net profit to Rs 242 crore during the quarter concluded on 30 September 2023. They also reported a 3.8 per cent increase in its consolidated revenue from operations, which came in at Rs 3,897.53 crore, in contrast to Rs 3,756.52 crore in Q2 of FY23. This increase in PAT can be attributed to an increase in volumes, selective price increase in products and stable raw material prices.

On a sequential basis, the company exhibited a 4.83 per cent increase in revenue and the PAT increased by 57.35 per cent, respectively.

Commenting on the results, Raghupati Singhania, chairman and managing director, stated, "JK Tyre continues its robust performance in Q2 of FY24, driving revenues with a multifold increase in profitability. The sustained thrust on larger market presence enabled a boost in volumes across segments and product categories. The strategic focus on enrichment of product mix across the entire Radial range, PCR/LTR/TBR has had a positive outcome. Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations. Export sales recorded a healthy double-digit growth over the sequential quarter."

On Wednesday, the company gave the green light to invest Rs 1,025 crore in expanding its tyre manufacturing capacity, with the goal of completing the proposed expansion by October 2025. This decision stems from the company's confidence in the ongoing robust growth of the Indian auto industry, creating a favourable opportunity to enhance its market presence in the automotive tyre segment.