JK Tyre Q2 Results: Profit Jumps Multifold, Beats Estimates
The company approved the expansion of the tyre manufacturing capacity for an investment of Rs 1,025 crore.
JK Tyre and Industries Ltd.'s net profit for the second quarter rose by about five times, beating analysts' estimates, amid a decline in expenses.
The company’s net profit increased 401.1% year-on-year to Rs 248.6 crore in the quarter ended September, according to an exchange filing on Wednesday. That compares with the Rs 203.4 crore consensus estimate of analysts tracked by Bloomberg.
JK Tyre and Industries Q2 FY24 Highlights (YoY)
Revenue up 3.8% at Rs 3,897.5 crore vs Rs 3,756.5 crore.
Ebitda up 98% at Rs 589.1 crore vs Rs 297.4 crore.
Margin at 15.11% vs 7.91%.
Net profit up 401.1% at Rs 248.6 crore vs Rs 49.6 crore.
The company approved the expansion of the tyre manufacturing capacity for an investment of Rs 1,025 crore.
As the Indian auto industry is witnessing growth, which is expected to continue for some time, it is an opportunity to increase the company's market presence further in the automotive tyre market, it said in its exchange filing.
With this decision, the manufacturing capacity of the tyre manufacturer will increase by 19.45%, while it has an existing capacity utilisation of 95%.
The approved project is proposed to be funded by way of equity or internal accruals and debt, the statement said.
The tyre manufacturer’s board also approved raising Rs 500 crore, in one or more tranches through qualified institutional placement.
Shares of JK Tyre and Industries closed 1.87% higher at Rs 310 apiece, as compared with a 0.47% decline in the benchmark Nifty 50 on Wednesday.
