JK Tyre & Industries on Saturday reported a 37 per cent year-on-year increase in consolidated net profit at Rs 211 crore in the first quarter ended June 30, 2024. The tyre maker had reported a net profit of Rs 154 crore for the April-June quarter of last fiscal.
Total income declined to Rs 3,655 crore for the period under review from Rs 3,726 crore in the June quarter of FY24, JK Tyre said in a regulatory filing.
“We continue to deliver profitable growth with a year-on-year increase in operating margins,” JK Tyre Chairman and Managing Director Raghupati Singhania said.
The company’s strategic thrust on premiumisation and pricing has helped it manage the raw material cost pressures, he added. Although overall revenues were marginally lower due to decline in the OEM segment, this was largely offset by increased exports, Singhania stated.
During the quarter, exports recorded healthy double-digit growth, despite geo-political disruptions and rising ocean freight, he said.
“Looking ahead, we expect export demand to pick up,” he added.
JK Tyre’s subsidiaries, Cavendish Industries and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company, Singhania stated.
“We remain optimistic about the outlook for tyre demand, driven by ongoing policy reforms including continued focus on infrastructure development. Moreover, the upcoming festive season and favourable monsoon condition augur well for the industry,” he stated.
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