Indian Tyre Industry major, JK Tyre & Industries Ltd. (JK Tyre) announced its audited results for FY2024. The Board has recommended a dividend of Rs.4.50 per equity share (including an interim dividend of Rs.1.00 per equity share already paid) i.e. 225% for the financial year ending 31st March 2024.
Commenting on the results, Dr Raghupati Singhania, Chairman and Managing Director (CMD), said, “JK Tyre achieved highest ever sales & profits during FY2024. Sales at Rs.15,046 crore were marginally higher with EBIDTA of Rs.2,122 crore increasing by 59% and PAT of Rs.811 crore registering a 2X increase. This performance is attributed to our continued focus on product premiumization, widening market reach and tech-enabled manufacturing & digitalization across operations achieving better efficiencies. Moreover, our strategic initiatives to fortify our balance sheet through equity infusion yielded fruitful results, reinforcing our financial resilience”.
Profit after tax of Rs.811 crore is after making provisions of Rs.106 crore for liability towards “Extended Producer’s Responsibility” imposed by Govt. of India on the tyre industry.
During the year exports were flat in the face of geo-political disruptions including freight hikes. In the coming quarters, the company expects to improve its export volumes. JK Tyre’s subsidiaries, Cavendish Industries Ltd. (CIL) and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company.
We remain optimistic about the tyre demand outlook led by robust infra-spends and buoyed economic activities which will help us move towards our vision of becoming a green & trusted mobility partner.
During FY24, JK Tyre raised Rs.500 crore through QIP which helped deleverage in balance sheet.
