Shares of JK Tyre & Industries rallied over 10 percent to Rs 446 per share on May 22 after the company delivered strong January-March quarter performance.
So far this year, shares of JK Tyre have surged over six percent, outpacing three-percent rise in the benchmark Nifty 50 index. JK Tyre shares had hit 52-week high of Rs 554 apiece on February 5, 2024.
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The company reported 56 percent year-on-year (YoY) increase in consolidated net profit to Rs 169 crore in Q4FY24, driven by upbeat demand. Revenue from operations, too, saw a modest rise of 1.8 percent YoY to Rs 3,698 crore in Q4FY24.
The board recommended a dividend of Rs 4.5 per share for FY24.
ALSO READ: JK Tyre's Q4 net profit jumps 56% to Rs 169 cr, declares Rs 3.50 dividend
The management attributed strong Q4 to focus towards product premiumisation, widening market reach, and tech-enabled manufacturing and digitalisation across operations.
"The company's strategic initiatives to fortify its balance sheet through equity infusion yielded fruitful results, reinforcing financial resilience. JK Tyre achieved the highest ever sales and profits during FY24. Sales at Rs 15,046 crore was marginally higher with Ebitda of Rs 2,122 crore increasing by 59 percent and PAT of Rs 811 crore registering a 2x increase," said Raghupati Singhania, chairman and managing director.
In the January-March quarter, foreign institutional investors raised their stake in JK Tyre to 15.2 percent from 12.2 percent in December quarter, while mutual funds trimmed their stake to 3.78 percent from 4.5 percent.
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