JK Tyre & Industries Ltd has demonstrated prudent management of funds raised through its Qualified Institutions Placement (QIP), according to the latest monitoring agency report for the quarter ended June 30, 2025.

QIP Fund Utilization

The company, which raised INR 500.00 crores through a QIP in December 2023, has allocated the funds as follows:

• Capital expenditure: INR 350.00 crores
• Working capital requirements: INR 25.00 crores
• General corporate purposes: INR 116.10 crores

Quarterly Utilization and Progress

During the quarter ending June 30, 2025, JK Tyre utilized INR 50.42 crores for capital expenditure. This brings the total utilization for capital expenditure to INR 92.92 crores since the QIP.

Fund Allocation Status

*Slight increase from original allocation due to surplus from issue expenses.

Monitoring Agency Findings

India Ratings & Research, the appointed monitoring agency, confirmed that there has been no deviation from the stated objectives of the QIP. The agency's report, based on management undertakings and statutory auditor certificates, provides an objective view of the fund utilization.

Unutilized Funds Management

The company has temporarily parked the unutilized proceeds of INR 422.69 crores in fixed deposits with HDFC Bank. These deposits are earning returns ranging between 7.50% to 7.76%, demonstrating the company's effort to generate returns on idle funds while awaiting deployment.

Timeline for Objective Completion

JK Tyre & Industries maintains its commitment to complete all stated objectives by March 2026, as originally planned in the placement document.

Transparency and Compliance

The submission of this monitoring agency report aligns with regulatory requirements, showcasing JK Tyre's commitment to transparency in its financial operations. The report, filed under Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides stakeholders with a clear picture of the company's progress in utilizing the QIP proceeds.

JK Tyre's adherence to its stated objectives and the proper utilization of funds reflect positively on its financial management and corporate governance practices. As the company continues to deploy the raised capital, investors and stakeholders will likely keep a close eye on the impact of these investments on JK Tyre's operations and financial performance in the coming quarters.

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

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.