JK Tyre and Industries on Wednesday reported a nearly three-fold rise in fourth-quarter profit, as raw material costs fell and domestic demand saw a boost.
The company, which supplies to Maruti Suzuki India Ltd and Tata Motors Ltd reported net’s profit for the quarter ended March 2023 stood at Rs108.4 crore as compared to ₹40 crore in the year ago period.
The revenue from operations rose by 9.7 per cent at ₹3,632.5 crore as against ₹3,311.8 crore, said JK Tyre and Industries per regulatory filing.
The earnings before interest, tax, depreciation and amortisation (EBITDA) for the March quarter was up by 65 per cent at ₹376.2 crore as compared to ₹227.9 crore, while the operating margins improved to 10.4 per cent as against 6.9 per cent.
The company’s board has recommended recommended a dividend of ₹2 per equity share of ₹2 each.
“JK Tyre has achieved highest ever revenues of ₹14,681 crore during FY2023, registering a growth of 22%. This is on account of growth in domestic demand witnessed in key segments, viz., commerciar and passerger vehicle t]rres. Exports have also performed well, despite global headwinds,” said Dr Raghupati Singhania, Chairman and MD
“We remain optimistic on the tyre industry growth path in the coming year, buoyed by an uptick in economic activities and the big push in infrastructure growth,” the company said in a statement.
Indian automakers had recorded higher sales in the March quarter as consumers snapped up passenger and commercial vehicles ahead of price increases on implementation of tighter fuel emission norms.
On Wednesday, the company’s share was up by 0.20 per cent to ₹199.25 on BSE.