Shares of JK Tyre zoom 10% amidst robust Q4 financials; profits soar

Shares of JK Tyre and Industries rallied by 10.3 per cent at Rs 446.75 per share on the BSE in Wednesday’s intraday deals. The jump in stock price came after the tyre company delivered a strong quarter four performance for the financial year 2022-23 (Q4FY24).

JK Tyre reported a 56 percent increase in its consolidated net profit for the fourth quarter, reaching Rs 169.33 crore, driven by sustained demand. The company recorded a net profit of  Rs 108.38 crore in the same period last year. However, sequentially, the company's profit declined by 23.35 percent compared to the December quarter at Rs 220.92 crore.

The firm's revenue from operations saw a modest increase of 1.8 percent, reaching Rs 3,698.45 crore, up from Rs 3,632.47 crore a year ago.

In addition, the company announced a final dividend of Rs 3.50 per equity share for the fiscal year 2024.

Raghupati Singhania, chairman and managing director (CMD), said, “JK Tyre achieved the highest ever sales and profits during FY24. Sales at Rs 15,046 crore was marginally higher with Ebitda of Rs 2,122 crore increasing by 59 per cent and PAT of Rs 811 crore registering a 2X increase. 

Singhania attributed this performance to continued focus on product premiumisation, widening market reach and tech-enabled manufacturing and digitalisation across operations achieving better efficiencies. “Moreover, our strategic initiatives to fortify our balance sheet through equity infusion yielded fruitful results, reinforcing our financial resilience,” he added.

At 10:21 AM; the stock of the company was up 6.11 per cent at Rs 429 per share on the BSE. By comparison the S&P BSE Sensex was up 0.14 per cent. The share price of the company has zoomed 9.8 per cent year to date while it hiked by 26.8 per cent in the last six months. The company is presently trading at a price to earnings valuation of Rs 21.85 times.