Anshuman Singhania, Managing Director at JK Tyre & Industries told ET, the company is utilising 85% of available capacity and will be investing fresh capital to meet demand for its products going ahead. “We are investing Rs 800 crore to enhance capacity at our facilities. This investment cycle is on the verge of completion. Separately, we are looking at investing Rs 1400 crore to increase production and maintain our leadership in radials over the next two years”, he informed.
JK Tyre & Industries nearly tripled net profit to Rs 227 crore in the three months ended Dec 31, 2023 on back of an increase in sales, better product mix and optimisation of its product range. The company reported net revenue of Rs 3,700 crore, up 2% over the year-ago period. Notably, the company reduced its net debt by 24% to Rs 3,456 crore from the levels recorded in March 2023.
Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 61% to Rs 563 crore last quarter. Ebitda margin stood at 15.2% in the quarter under review.
Raghupati Singhania, Chairman and Managing Director (CMD), JK Tyre & Industries said, “The demand outlook remains optimistic, driven by the strong momentum in economic activity and positive consumer sentiments, across product categories. The global demand scenario is still challenging due to geo-political disturbances affecting exports during the quarter.” Exports currently comprise 15% of revenues at the company.
He added, JK Tyre & Industries has raised Rs 500 crore by way of QIP in December 2023, which received an overwhelming response from investors at large. Based on the performance of the company, the Board declared an interim dividend of Re 1 per equity share (50%) having face value of Rs 2 per share.
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