JK Tyre Q4 net profit up 54% to Rs 172 crore

JK Tyre & Industries on Tuesday said its consolidated net profit increased 54 per cent to Rs 172 crore for the fourth quarter ended March 31, 2024, on account of higher sales.

The tyre maker had reported a net profit of Rs 112 crore in the year-ago period.Total income rose to Rs 3,714 crore for the fourth quarter as compared with Rs 3,645 crore in the year-ago period, JK Tyre said in a statement.

For the full year ended March 31, 2024, the tyre maker posted a net profit of Rs 811 crore, a three-fold jump, as against Rs 265 crore in FY23.

Total income rose to Rs 15,046 crore for the last fiscal as compared with Rs 14,681 crore in FY23.The company said it achieved highest-ever sales and profits during FY24.

"This performance is attributed to our continued focus on product premiumisation, widening market reach and tech enabled manufacturing and digitalisation across operations achieving better efficiencies," JK Tyre Chairman and MD Raghupati Singhania said.Moreover, the company's strategic initiatives to fortify its balance sheet through equity infusion yielded fruitful results, reinforcing financial resilience, he added.

Singhania noted that the company's profit of Rs 811 crore last fiscal is after making provisions of Rs 106 crore for liability towards 'Extended Producer's Responsibility' imposed by the government on the tyre industry.

He said that exports were flat last year due to geo-political disruptions, including freight hikes."In the coming quarters, company expects to improve its export volumes," Singhania stated.JK Tyre's subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company, he stated.

"We remain optimistic on tyre demand outlook led by robust infra-spends and buoyed economic activities," Singhania said.He said the company expects a topline growth of 9-10 per cent this fiscal on account of road infra development and continuing robust demand for automobiles in the domestic market.

Singhania noted that the company plans to invest around Rs 1,400 crore over the next 18-20 months to enhance the production capacity, especially the passenger car tyres.

The company said its board has recommended a dividend of Rs 4.5 per share of Re 1 each for the financial year ended March 31, 2024.JK Tyre shares on Tuesday ended 0.36 per cent at Rs 404.30 apiece on the BSE.