JK Tyre & Inds reports PAT of Rs 227 cr in Q3 FY24

JK Tyre & Industries reported net profit of Rs 227 crore in Q3 FY24, steeply higher than Rs 66.75 crore in Q3 FY23.

Revenue from operations increased 2.07% YoY to Rs 3,687.72 crore in Q3 FY24.

Profit before exceptional items and tax stood at Rs 345.02 crore in Q3 FY24, steeply higher than Rs 126.86 crore posted in corresponding quarter last year.

The company has achieved an EBITDA of 563 crore, recording growth of 61% as compared to the same period last year.

Notably, the net debt stood at Rs 3,456 crore, registering a 24% reduction from the levels recorded in March 2023.

Meanwhile, the company has declared an interim dividend of Rs 2 per share. Record date is fixed as on Friday, 16 February 2024. he interim dividend will be paid on 27th February 2024.

Further, the companys board has approved to acquire 50,000 equity shares of Renew Wind Energy at Rs 204 per share including premium of Rs 194 per equity share. After investment the companys shareholding in Renew Wind Energy will increase to 65,700 equity shares (from 4.35% to 18.22%).

Raghupati Singhania, chairman and managing director, said, At JK Tyre, we remain committed to achieving profitable growth centered on product premiumization, volume expansion, and optimizing our product mix. The demand outlook remains optimistic, driven by the 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.

Highlighting the signfficant contributions of subsidiaries, namely Cavendish Industries (CIL) and JK Tornel, Mexico, Dr. singhania acknowledged their role in bolstering the company's overall revenues and profitability.

We have successfully raised Rs 500 crore by way of QIP in December 2023, which received an overwhelming response from investors at large, reinforcing investors confidence in JK Tyre's growth story.

JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.

The scrip rose 0.59% to Rs 535.35 on the BSE.

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