 "RAGHUPATI SINGHANIA, chairman and managing director, JK Tyre & Industries")
Raghupati Singhania, chairman and managing director, JK Tyre & Industries
JK Tyre and Industries posted a 37.41 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the first quarter of the financial year 2024-25, concluding on June 31, reaching Rs 211.44 crore. However, JK Tyre’s revenue from operations declined by 2.12 per cent Y-o-Y to Rs 3,639.08 crore.
On a sequential basis, the company exhibited a 24.87 per cent increase in PAT, although the revenue declined by a moderate 1.61 per cent. The Ebitda (earnings before interest, tax, depreciation, and amortisation) margin rose 14.1 per cent, reaching Rs 516 crore.
Commenting on the results, Raghupati Singhania, chairman and managing director of JK Tyre and Industries, stated, “We continue to deliver profitable growth with a year-on-year increase in operating margins. Our strategic thrust on premiumisation and pricing has helped us manage the raw material cost pressures. Although overall revenues were marginally lower due to a decline in the OEM segment, this was largely offset by increased exports.”
During the quarter, the company’s exports saw double-digit growth despite geopolitical disruptions and rising ocean freight costs. Looking ahead, JK expects export demand to pick up.
JK Tyre’s subsidiaries, Cavendish Industries Ltd. (CIL) and JK Tornel in Mexico, also contributed towards overall revenues and profitability. They remain optimistic about the outlook for tyre demand, driven by ongoing policy reforms, including a continued focus on infrastructure development.
The upcoming festive season and favourable monsoon conditions are expected to benefit the industry. At JK Tyre, we are committed to maintaining our focus on digitalisation, R&D, innovation, sustainability, customer-centricity, and technology-driven manufacturing.
The export revenue on a consolidated basis stood at Rs 637 crore, a growth of 9 per cent on a year-on-year basis.
On the same day, JK Tyre and Industries’ share price declined by 1.27 per cent, ending the day’s trade at Rs 431.10 apiece on the BSE.
First Published: Aug 03 2024 | 5:17 PM IST
