JK Tyre & Industries Reports 37% YoY Increase in Q1 Net Profit

JK Tyre & Industries reported a 37% YoY increase in consolidated net profit to Rs 211 crore in Q1 of FY24. Despite a slight decline in total income, increased exports and strategic measures have helped manage costs and offset lower OEM segment revenues. Subsidiaries also contributed significantly to overall performance.

JK Tyre & Industries on Saturday announced a significant 37% year-on-year increase in consolidated net profit, amounting to Rs 211 crore for the first quarter ending June 30, 2024.

This marks a notable rise from the Rs 154 crore net profit reported in the same quarter of the previous fiscal year. However, the company's total income saw a slight decline to Rs 3,655 crore from Rs 3,726 crore in FY24's corresponding quarter, according to their regulatory filing.

Chairman and Managing Director Raghupati Singhania attributed the growth to strategic premiumisation and pricing that helped navigate raw material cost pressures. He noted that while revenues from the OEM segment declined, increased exports compensated for the shortfall. Singhania expressed optimism for future export demand despite current geopolitical and logistical challenges.

Singhania also highlighted the substantial contributions from JK Tyre's subsidiaries—Cavendish Industries and JK Tornel, Mexico—to the company's overall revenues and profitability. He remains optimistic about the tyre demand outlook, driven by policy reforms, ongoing infrastructure development, the upcoming festive season, and favorable monsoon conditions.

(With inputs from agencies.)