JK Tyre Reports 37% Q1 Profit Increase to ₹211 Crore

5 Aug 2024 , 02:27 PM

JK Tyre & Industries reported a 37% increase in consolidated net profit for the first quarter ending June 30, 2024, reaching ₹211 Crore. This is up from ₹154 Crore in the same quarter of the previous fiscal year.

Total income for the quarter fell to ₹3,655 Crore from ₹3,726 Crore in the June quarter of FY24, according to the company’s regulatory filing.

Chairman and Managing Director Raghupati Singhania noted that the company achieved profitable growth and improved operating margins year-on-year. This was attributed to strategic premiumisation and pricing efforts, which helped manage raw material cost pressures.

The company experienced a slight overall revenue decline due to reduced performance in the OEM segment. However, increased exports largely offset this decrease. Exports showed healthy double-digit growth despite challenges such as geopolitical disruptions and rising ocean freight costs.

Singhania expressed optimism about future export demand and highlighted the significant contributions of subsidiaries Cavendish Industries and JK Tornel in Mexico to the company’s revenue and profitability.

Looking ahead, Singhania expects continued growth in tyre demand driven by ongoing infrastructure projects, the upcoming festive season, and favorable monsoon conditions.

JK Tyre & Industries Ltd is one of India’s leading tyre manufacturers and ranks among the top 25 globally. The company has been at the forefront of tyre innovation, including the introduction of India’s first radial tyre in 1977 and leading the Truck Bus Radial segment. In 2019, the company set a record with India’s largest off-the-road tyre, the VEM 045.

The company’s global research and technology center, the Raghupati Singhania Centre of Excellence in Mysore, is equipped with advanced technologies. Additional research efforts are supported by the Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) and the JK Tyre Tech Centre.

JK Tyre introduced India’s first ‘Smart Tyre’ technology with Tyre Pressure Monitoring Systems (TPMS) using TREEL Sensors to monitor tyre pressure and temperature.

The company operates in 105 countries with over 180 global distributors and runs 12 sustainable manufacturing facilities—9 in India and 3 in Mexico—producing around 35 million tyres annually. It has a network of over 4,000 dealers and 500+ brand shops, including Steel Wheels and Xpress Wheels.

JK Tyre is also a major player in Indian motorsport, promoting the sport and nurturing young talent for over 30 years.

The company has been recognized in Superbrands India for seven consecutive years and was listed among India’s Best Companies to Work For in 2019 by Great Place to Work®. Additionally, JK Tyre received the Sword of Honour for Safety from the British Safety Council.