JK Tyre Q3 Results: Profit More Than Triples, Revenue Meets Estimates

Earnings of JK Tyre & Industries Ltd. grew more than three times in the fiscal third quarter, even as income met analysts' expectations.

Net profit of the Delhi-based tyremaker rose 240.17% over the previous year to Rs 227.07 crore in the three months ended Dec. 31, on the back of revenue that increased 2.07% over the same period to Rs 3,687.72 crore, according to an exchange filing on Tuesday.

Analysts tracked by Bloomberg had estimated the top and bottom line at Rs 3,812.80 crore and Rs 173.20 crore, respectively.

JK Tyre Q3 Results: Key Highlights (Consolidated, YoY)

• Revenue up 2.07% at Rs 3,687.72 crore (Estimate: Rs 3,812.80 crore).

• Ebitda up 62.13% at Rs 550.18 crore (Estimate: Rs 486 crore).

• Ebitda margin expands 552 bps to 14.91% (Estimate: 12.70%).

• Net profit up 240.17% at Rs 227.07 crore (Estimate: Rs 173.20 crore).

• Interim dividend of Re 1 per share declared.

As on Dec. 31, the company’s net debt stood at Rs 3,456 crore—a 24% reduction from levels seen on March 31, 2023. During the quarter, JK Tyre raised Rs 500 crore by way of a qualified institutional placement.

“We remain committed to achieving profitable growth centred on product premiumisation, volume expansion, and optimising our product mix,” Raghupati Singhania, chairman and managing director at JK Tyre, said in a statement accompanying the third-quarter earnings.

“The demand outlook remains optimistic, driven by the strong demand momentum in economic activity and positive consumer sentiments, across product categories.”

The global demand scenario remains uncertain, he said, which affected exports. Still, JK Tyre’s subsidiaries in Mexico—Cavendish Industries and JK Tornel—added meaningfully to the company’s earnings, Singhania said.

On Tuesday, JK Tyre shares rose 0.59% to Rs 535.35 apiece on the BSE, even as the benchmark Sensex ended the day 0.63% higher at 72,186.09 points.