JK Tyre & Industries plans to invest ₹1,400 Crore over next two years

7 Feb 2024 , 11:14 AM

JK Tyre & Industries is planning to invest ₹1,400 Crore over the next two years to develop capacity to fulfil local demand for truck, bus, and passenger vehicle radial tyres.

According to Anshuman Singhania, the Managing Director of JK Tyre & Industries, the company is currently using 85% of its available capacity and plans to invest additional capital to meet the growing demand for its products. Singhania stated, ‘We are dedicating ₹800 Crore to expand capacity at our facilities, and this investment phase is nearing completion. Additionally, we are considering an investment of ₹1,400 Crore to boost production and uphold our leadership in radial tires over the next two years.”

JK Tyre & Industries’ net profit nearly quadrupled to ₹227 Crore in the three months ended December 31, 2023, owing to increased sales, improved product mix, and product range optimisation. The firm generated net sales of ₹3,700 Crore, a 2% increase over the previous year. Notably, the company lowered its net debt by 24%, to ₹3,456 Crore, from March 2023 levels.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 61% to ₹563 crore previous quarter. The EBITDA margin was 15.2% in the period under review.

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