Indian Tyre Industry major, JK Tyre posted consolidated net revenue of Rs 3,650 crore in Q1FY2023, up 39 percent YoY from Rs 2,618 crore in Q1FY2022. The tyre major posted a net profit of Rs 35 crore, down by 20 percent from Rs 44 crore in Q1FY2022.
The 90 bps gain in EBITDA over the previous quarter is powered by operating leverage, efficiency improvement, and product premiumisation.
Dr Raghupati Singhania, CMD, JK Tyre said, “the company has achieved its highest ever sales at Rs3,650 crore, a 39 percent increase over the corresponding quarter. There has been a healthy pickup in demand both for the passenger as also commercial tyres, both in the replacement and original equipment markets. The Company continued its focus on differentiated product offerings and driving premiumisation. Furthermore, exports have performed well.”
Raw material and other input costs witnessed an ongoing uptrend, thus impacting margins. The company has undertaken multiple price revisions though not to the full extent and will pursue further opportunities.
Cavendish Industries and JK Tornel, Mexico, subsidiaries of the company have contributed to the overall growth of the company.
He further added “We are quite optimistic on India’s growth story and demand outlook in automobile and tyre industry, despite global fears of slowdown, geo-political disturbances and supply chain constraints. We believe domestic consumption and healthy infrastructural spending will drive the growth in the near future.”
The flagship company of JK Organisation, JK Tyre & Industries provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-Road and two and three-wheelers.
JK Tyre is present in 100+ countries with over 180 Global distributors. The Company has 12 globally benchmarked ‘sustainable’ manufacturing facilities – 9 in India and 3 in Mexico – that collectively produce around 33 million tyres annually. The Company also has a strong network of over 6000 dealers and 650+ dedicated Brand shops called Steel Wheels, Truck Wheels and Xpress Wheels.