JK Tyre Reported 39% YoY Increase in Revenue in First Quarter of FY23
Indian tyre major JK Tyre & Industries Ltd (JK Tyre) on Monday said its revenue rose by 39 per cent year-on-year to Rs 3,650 crore in the first quarter of the current financial year.
The company’s EBIDTA for the first quarter of 2022-23 stood at Rs 291 crore. The company’s profit before tax stood at Rs 57 crore for the quarter under review.
Commenting on the results, Raghupati Singhania, JK Tyre’s Chairman and Managing Director (CMD), said, “JK Tyre has achieved its highest ever sales at Rs 3,650 crore, a 39 per cent increase over the corresponding quarter.”
“There has been a healthy pickup in demand both for 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,” Singhania said in a statement.
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 Ltd and JK Tornel, Mexico, subsidiaries of the company have contributed to the overall growth of the company.
Singhania further added “We are quite optimistic on India’s growth story and demand outlook in automobile and tyre industry, despite global fears of slowdown, geopolitical disturbances and supply chain constraints. We believe domestic consumption and healthy infrastructural spends will drive the growth in the near future.