JK Tyre Q2 Results: JK Tyre announced its July-September quarter results for fiscal 2023-24 (Q2FY24) on Wednesday, November 1, reporting a surge of 371 per cent in consolidated net profit at ₹242 crore, compared to ₹51.31 crore in the corresponding period last year. The leading tyre manufacturer’s revenue from operations in the second quarter of current fiscal came in at ₹3,897.53 crore, registering a rise of 3.8 per cent, compared to ₹3,756.52 crore in the year-ao period.
“The sustained thrust on larger market presence enabled to boost volumes across segments and product categories,” JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said in a statement.
The strategic focus on enrichment of product mix across the entire radial range across segments has had a positive outcome, he added.
“Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations. We hope to continue with strong performance going forward as well owing to a robust economy in the country,” Singhania said.
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On the operating front, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the September quarter came in at ₹589 crore, registering a surge of 98 per cent, compared to ₹297.4 crore in the year-ago period.
The company said its board has approved enhancing tyre manufacturing capacity by 19.45 per cent by October 2025. JK Tyre currently has a manufacturing capacity of 155.11 lakh tyres per annum with a capacity utilisation of 95 per cent.
JK Tyre said it expects the project to entail an investment of ₹1,025 crore. The project is proposed to be funded by way of equity/internal accruals and debt, according to the tyre manufacturer.
The company said with the lndian auto industry expected to grow in the coming days, there is a need to increase market presence further in the tyre segment. JK Tyre board approved to raise up to ₹500 crore in one or more tranches by way of qualified institutions placement.
On Wednesday, shares of JK Tyre settled 1.27 per cent higher at ₹308.10 apiece on the BSE.
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Updated: 01 Nov 2023, 05:18 PM IST