JK Tyre reports highest profit record in FY24

JK Tyre & Industries Ltd. (JK Tyre), a significant player in the Indian tyre industry, has announced its audited results for fiscal year 2024. The Board has recommended a dividend of ₹ 4.50 per equity share (including an interim dividend of ₹ 1.00 per equity share previously paid), or 225 percent, for the fiscal year ending March 31, 2024.

Commenting on the results, Dr. Raghupati Singhania, Chairman & Managing Director (CMD), says, “JK Tyre achieved the highest ever sales and profits during FY2024. Sales at ₹ 15,046 crore were marginally higher with EBIDTA of ₹ 2,122 crore increasing by 59 percent and PAT of ₹ 811 crore registering a 2X increase. This performance is attributed to our continued focus on product premiumisation, widening market reach and tech-enabled manufacturing and digitalisation across operations achieving better efficiencies. Moreover, our strategic initiatives to fortify our balance sheet through equity infusion yielded fruitful results, reinforcing our financial resilience”. 

The profit after tax of ₹ 811 crore is after making provisions of ₹ 106 crore for responsibility towards the “Extended Producer’s Responsibility” imposed by the Government of India on the tyre business. Exports were flat throughout the year despite geopolitical shocks such as freight spikes. In the following quarters, the company hopes to increase its export quantities.

JK Tyre’s subsidiaries, Cavendish Industries Ltd. (CIL) and JK Tornel, Mexico, have continued to contribute significantly to the company’s overall sales and profitability. We remain positive about the tyre demand picture, driven by robust infrastructure spending and buoyant economic activity, which will help us achieve our aim of becoming a green and trusted mobility partner.

During FY24, JK Tyre raised ₹ 500 crore through a QIP, which helped to reduce the balance sheet burden.