JK Tyre Q1 Results: Net Profit Zooms 300 Per Cent To Rs 154 Crore, Shares Touch 52-Week High
The company recorded a 2 per cent increase in its revenue from operations for Q1FY24 on a year-to-year basis.
JK Tyre & Industries Ltd. posted a robust increase in its net profit of more than 300 per cent on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Friday. The tyre manufacturer logged a net profit of Rs 154 crore for the June quarter in the current financial year (FY24) against a net profit of Rs 37.2 crore in the first quarter of the previous fiscal year (FY23).
The company recorded a 2 per cent increase in its revenue from operations for Q1FY24 on a year-to-year basis. It posted a revenue of Rs 3,7181.1 crore for the current quarter against its Q1 revenue of Rs 3,643 crore for FY23, in its exchange filing.
The company reported a 3 per cent increase in volume over the previous quarter. Elaborating on the results, the company’s chairman and managing director (CMD), Raghupati Singhania, noted, “The financial year 2024 has started on a positive note, in terms of better profitability as a result of our continued focus on premiumization of the product mix, indeed aided by stable input costs. We·are witnessing buoyancy in demand in the replacement and OEM segments across product categories, driven by healthy macro-economic environment.”
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Expecting a health growth ahead, Singhania added, “Export demand is also expected to revive in the coming months. With good monsoon, continuing thrust on infrastructure and festive season coming ahead, we remain optimistic on demand for tyres.”
He further stated that subsidiaries Cavendish Industries Ltd. and JK Tomel, Mexico continued to be profitable with “healthy contribution to Company's overall revenues.”
A part of the JK Group, JK Tyre and Industries focuses on tyre manufacturing for small, mid-sized, and heavy-duty vehicles. The tyre maker has 12 operational plants, 3 of which are based in Mexico.
JK Tyre's shares hit a 52-week high of Rs 286 per share on the BSE on Friday, before closing at Rs 283 apiece, up 6.73 per cent.
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