JK Tyres spurts ~15% as company posts robust results in Q2FY24

2 Nov 2023 , 01:45 PM

JK Tyre & Industries’ shares soared 14% to a new 52-week high of Rs 351 in Thursday’s BSE trade after the company reported a nearly five-fold increase in consolidated net profit for the second quarter at Rs 249 crore, compared to around Rs 50 crore in the same period last fiscal, owing to operational efficiencies, product premiumisation across segments, and raw material price softening.

At around 1.40 PM, JK Tyre was trading 9.04% higher at Rs 336, against the previous close of Rs 308.15 on NSE.

Meanwhile, consolidated net sales increased 4% to Rs 3,905 crore, up from Rs 3,764 crore in Q2FY23. EBITDA (earnings before interest, tax, depreciation, and amortisation) grew to Rs 597 crore from Rs 305 crore in the previous year.

The tyre manufacturer also authorized a Rs 1,025 crore investment for production capacity expansion. The anticipated expansion will be paid for with a combination of equity/internal accruals and debt.

The margin for the current quarter was 15.11%, up from 7.91% the previous year.

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