JK Tyre & Industries looking to invest Rs 1400 crore in next two years_JK Tyre & Industries looking to invest Rs 1400 crore in next two years

JK Tyre & Industries looking to invest Rs 1400 crore in next two years

May 31, 2024

JK Tyre Industries is looking at investing Rs 14 billion over the next two years to meet the radial demand for trucks, buses and passenger cars in the local market. Ans human Singhania, managing director of JK Tyre Industries, told The Economic Times that the company is utilizing 85 per cent of its available capacity and will be investing fresh capital to meet future demand for its products. “We are investing Rs 80 crore to enhance the capacity of our facilities. The investment cycle is almost complete. We will also invest Rs 14 crore over the next two years to increase production and maintain our leadership position in the radial segment.” He said.

JK Tire Industries’ net profit nearly tripled to Rs 2,270 crore in the three months ended December 31, 2023, driven by higher sales, improved product portfolio and optimized product range. The company’s net profit of ₹370 crore is 2% higher than the same period last year. Notably, the company’s net debt stood at Rs 34.56 billion, down 24% from the March 2023 record level.

Last year, EBITDA (earnings before interest, tax, depreciation and amortization) grew 61% to Rs 563% million. Ebitda margin for the quarter was 15.2%. Raghupati Singhania, Chairman and Managing Director (CMD), JK Tyre Industries “The demand outlook remains positive, driven by strong economic activity across product categories and positive consumer confidence.” Geopolitical turmoil has impacted the quarter. Exports and global demand “Exports currently account for 15% of the company’s revenue.”

He added that JK Tire Industries raised Rs 5 billion through QIP in December 2023 and received an overwhelming response from investors.

Based on the performance of the company, the Board of Directors declared an interim dividend of Re 1 (50%) per equity share of Rs. 2 each.

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