Profit before tax surged to Rs 376.82 crore in Q2 FY24 as compared with Rs 73.56 crore in corresponding quarter last year.

EBITDA was at Rs 597 crore in the quarter ended 30 September 2023, up 96% as compared with Rs 305 crore in Q2 FY23. EBITDA margin improved by 718 bps to 15.3% in Q2 FY24 as compared to 8.1% in Q2 FY23. On QoQ basis margin expanded by 280 bps on back of improved operational efficiencies, product premiumization, further supported by raw material prices.

Net debt stood at Rs 4,087 crore as on September 2023.

On half-year basis, the company's net profit stood at Rs 407.21 crore in H1 FY24, steeply higher than Rs 84.74 crore recorded in H1 FY23. Revenue from operations increased 2.92%YoY to Rs 7,615.61 crore in H1 FY24.

Dr. Raghupati Singhania, chairman and managing director CMD, said, “JK Tyre continues its robust performance in Q2FY24 driving revenues with multifold increase in profitability. The sustained thrust on larger market presence enabled boost volumes across segments and product categories. The strategic focus on enrichment of product mix across the entire Radial range, PCR/LTR/TBR has had positive outcome. Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations.

He further added, “Export sales recorded a healthy double-digit growth over the sequential quarter.

JK Tyre's subsidiaries Cavendish Industries (CIL) and JK Tornel, Mexico continue to perform well, with significant contribution to company's overall revenues and profitability. CIL has registered increased profit margins during the quarter. We hope to continue with strong performance going forward as well owing to robust economy in the country.”

Meanwhile, the company’s board has approved to raise funds in one or more tranches by way of issuance of such number of equity shares having face value of Rs 2 each or any other equity linked instruments and / or any other eligible securities or any combination thereof for an aggregate amount not exceeding Rs 500 crore by way of qualified institutions placement (QIP) or other permissible mode.

Furthermore, the company has also approved expansion for enhancement of tyre manufacturing capacity. Currently the company has manufacturing capacity of 155.11 lakh tyres p.a. The proposed expansion will increase the capacity by 19.45%. It will require investment of Rs 1,025 crore.

The said expansion is expected to be completed by October 2025. The above project is proposed to be funded by way of equity / internal accruals and debt.

JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.