JK Tyre & Industries Q4 results: Net profit rises 56.2% to Rs 169 cr

JK Tyre & Industries posted a 56.24 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the fourth quarter of FY24, reaching Rs 169.33 crore. The company also posted a 1.82 per cent increase in its consolidated revenue from operations, which came in at Rs 3,698.45 crore. This increase in PAT was attributed to product premiumisation and expansion in market reach.

On a sequential basis, the company exhibited a 0.29 per cent increase in revenue; however, the PAT declined by 23.36 per cent. The Ebitda (Earnings before interest, tax, depreciation and amortisation) rose 27.8 per cent Y-o-Y, reaching Rs 389 crore.

Commenting on the results, Raghupati Singhania, chairman and managing director (CMD), said, “JK Tyre achieved 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. This performance is attributed to our 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.”

For the full year of FY24, the company posted a 2.4 per cent Y-o-Y increase in revenue and the PAT surged by almost threefold, reaching Rs 15,001.78 crore and Rs 786.23 crore, respectively. The Ebitda was up by 59 per cent, reaching Rs 1,334 crore.

The PAT includes provisions of Rs 106 crore for liability towards the “Extended Producer’s Responsibility” imposed by the Government of India on the tyre industry. Despite geopolitical disruptions and freight hikes causing flat export performance, the company expects to improve its export volumes in the coming quarters. Subsidiaries of the company Cavendish Industries (CIL) and JK Tornel, Mexico, have significantly contributed to overall revenues and profitability.

The tyre maker remains optimistic about the tyre demand outlook, driven by robust infrastructure spending and buoyant economic activities, aligning with its vision of becoming a green and trusted mobility partner. Additionally, during FY24, JK Tyre raised Rs 500 crore through a qualified institutional placement (QIP), which helped deleverage its balance sheet.