JK Tyre and Industries shares hit a 52-week high on Friday after it reported strong earnings for the recently ended April-June quarter. The company reported a four-fold YoY (year-on-year) increase in the quarterly net profit at Rs 153.87 crore.
The increase in quarterly profit numbers seemed to have been driven by a consistent sequential rise in the topline numbers and an one-off exceptional item expense of Rs 34.50 crore, which was reported in the base quarter of Q1FY23.
At 2.15 pm, JK Tyre stock was quoting at Rs 283, up 6.79 percent or Rs. 18. The stock has witnessed a 48.95 percent rise in year-to-date terms. At both exchanges, nearly 57 lakh shares changed hands against the monthly average of 26 lakh shares.
In its results for Q1FY24 filed on August 4, the company reported a 2.1 percent YoY rise in its revenue from operations at Rs 3,718.1 crore as compared to Rs 3,643 crore in Q1FY23.
EBITDA (earnings-before-interest-taxes-depreciation and ammortisation) margins were up by 450 basis points at 12.3 percent in the quarter under review.
The company reported 3 percent volume growth over the previous quarter. Segment-wise, the tyre-maker reported a 3.7 percent decline in revenue from its major revenue generating 'truck and bus' segment. While the revenue figures for the 'passenger line and radial' segment grew by 7.4 percent.
JK Tyre and Industries, part of the larger JK Group, is engaged in the manufacturing of tyres for small, mid-sized, as well as heavy duty vehicles. The company derives a large chunk of its revenue from tyres produced for large vehicles such as buses and trucks. The tyre maker operates through its 12 plants, out of which 3 are based in Mexico. JK Tyre has a production capacity of 32 million tyres per annum.
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