JK Tyre Reports 11% Sales Growth in Q1, Net Profit Rises to ₹155 Crore
JK Tyre & Industries announced strong Q1 results with total revenues of ₹3,891.00 crore, up 11% year-on-year. The company's net profit after tax reached ₹155.00 crore, a 51% increase from the previous quarter. EBITDA stood at ₹424.00 crore with a 10.90% margin. Growth was driven by steady demand in replacement and OE segments. Exports of passenger car tyres showed strong traction. Both subsidiaries, Cavendish and Tornel, contributed significantly to overall financials. The company expects tyre demand to increase in the second half of the fiscal year.
*this image is generated using AI for illustrative purposes only.
JK Tyre & Industries , one of India's leading tyre manufacturers, has announced its financial results for the first quarter, showcasing robust growth in domestic markets and improved profitability.
Strong Revenue Growth
The company reported total revenues of ₹3,891.00 crore for Q1, marking an 11% year-on-year increase. This growth was primarily driven by steady demand in both replacement and OE (Original Equipment) segments, underscoring JK Tyre's continued focus on core growth drivers and strengthening market presence.
Profitability Improvements
JK Tyre's consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 stood at ₹424.00 crore, with an EBITDA margin of 10.90%. The company's net profit after tax (PAT) reached ₹155.00 crore, representing a significant 51% increase compared to the previous quarter.
Key Financial Highlights
| Particulars | Q1 (₹ Crore) |
|---|---|
| Total Revenues | 3,891.00 |
| EBITDA | 424.00 |
| EBITDA Margin | 10.90% |
| Profit Before Tax (PBT) | 208.00 |
| Profit After Tax (PAT) | 155.00 |
Operational Performance
Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre, commented on the results, stating, "The growth momentum in domestic markets remained robust in Q1, with JK Tyre clocking a sales growth of 11% year-on-year, contributed by steady demand for our products in both replacement and OE segments."
He further added, "Despite a challenging and uncertain macro-economic environment, exports of passenger car tyres witnessed strong traction both on quarter-on-quarter and year-on-year basis, signifying pull for our products and enhanced brand perception in the global markets."
Subsidiary Performance
Both of JK Tyre's subsidiaries, Cavendish (India) and Tornel (Mexico), continued to contribute significantly to the overall financials of the company.
Future Outlook
The company expects demand for tyres to pick up in the second half of the fiscal year, supported by the push on infrastructure and overall economic momentum.
Sustainability Initiatives
JK Tyre emphasized its commitment to environmental responsibility and innovation, with sustainability at the core of its business strategy. The company is focusing on creating lighter, stronger tyres from bio-sourced and recycled materials while ensuring optimal performance standards.
Recent Accolades
The company recently secured a 'Best-in-Class' ESG rating for the second consecutive year, highlighting its commitment to environmental, social, and governance practices.
As JK Tyre continues to navigate the dynamic tyre market, its focus on innovation, sustainability, and market expansion appears to be yielding positive results, as reflected in its Q1 performance.
Historical Stock Returns for JK Tyre & Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.03% | +8.48% | +6.53% | +29.24% | -17.11% | +488.50% |
15
