Tyre major JK Tyre & Industries (JK Tyre) on Wednesday reported a mult-ifold jump in its consolidated net profit for the second quarter ended September to ₹249 crore compared with ₹50 crore in the corresponding period last fiscal year.
Revenue rose by four per cent year-on-year (YoY) to ₹3,905 crore for the quarter in review compared with ₹3,764 crore in Q2 FY23, the company said.
“JK Tyre continues its robust performance in Q2FY24 driving revenues with multifold increase in profitability. The sustained thrust on larger market presence enabled boost volumes across segments and product categories. The strategic focus on enrichment of product mix across the entire Radial range has had positive outcome. Cost compression and the ongoing efforts to enhance internal efficiencies remain the bedrock of our operations,” Raghupati Singhania, Chairman and Managing Director (CMD), JK Tyre, said.
He further added that export sales recorded a healthy double-digit growth over the sequential quarter.
Meanwhile, the board of the company has approved investment of ₹1,025 crore by October 2025 in expansion for enhancement of tyre manufacturing capacity by 19.45 per cent to the existing capacity utilisation of 95 per cent.
The above project is proposed to be funded by way of equity/ internal accruals and debt), it said adding that “lndian auto industry is witnessing a good growth, which is expected to continue for some time. Hence an opportunity to increase company’s market presence further in the automotive tyre market.”
In another decision, the Board has also considered and approved, inter alia, raising of funds, in one or more tranches, by way of issuance of such number of equity shares having face value of ₹2 each of the company or any other equity linked instruments for an aggregate amount not exceeding ₹500 crore, by way of qualified institutions placement.
Shares of JK Tyre closed at ₹308.10 apiece on the BSE on Wednesday, up 1.27 per cent from the previous close.