JK Tyre & Industries on Wednesday said its consolidated net profit surged over two-fold to Rs 112 crore for the fourth quarter of 2022-23 riding on robust demand in the domestic market for both passenger and commercial vehicle radial tyres. The company, which had reported a net profit of Rs 39 crore in the January-March quarter of 2021-22, said it expects double-digit growth in the topline this fiscal.
Total income rose to Rs 3,645 crore in the fourth quarter as compared with Rs 3,320 crore in the year-ago period, JK Tyre said in a statement.
For the 2022-23 fiscal, the company posted a net profit of Rs 263 crore, up 31 per cent as compared with Rs 201 crore in FY22. Total income rose to Rs 14,681 crore as compared with Rs 12,020 crore in the 2021-22 fiscal.
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"We have achieved the highest ever revenue in FY2023. This is on account of robust domestic demand witnessed for both commercial and passenger vehicle radial tyres," JK Tyre & Industries Managing Director Anshuman Singhania told reporters in a virtual press meet.
He noted that the company is in the process of investing around Rs 790 crore in the expansion of passenger and truck and bus radial tyres. On a query regarding the company's plans for the electric vehicle segment, Singhania said the company has already introduced such tyres and is in advanced talks with various companies to launch new products suiting their requirements.
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On the business outlook for the company, Singhania said he expects "a strong double-digit growth in the topline" this fiscal.
He noted that the overall tyre industry is expected to witness growth this fiscal on the back of various infrastructure projects and improvement in the chip supplies to the automobile industry. Singhania said the company's exports remained subdued in FY23.
He, however, exuded hope that overseas shipments will normalise in the current financial year.
JK Tyre said its subsidiaries Cavendish Industries and JK Tornel, Mexico performed well last fiscal with improved volumes, revenues and profitability.
"We remain optimistic on the tyre industry growth path in the coming year, buoyed by uptick in economic activities and the big push in infrastructure growth," JK Tyre & Industries Chairman and Managing Director Raghupati Singhania noted.
The company's board recommended a dividend of Rs 2 per share having a face value of Rs 2 each for the financial year ended March 31, 2023.
JK Tyre noted that IFC, a member of the World Bank Group, has invested Rs 240 crore in the company by way of CCDs.
Shares of the company ended 0.20 per cent up at Rs 199.25 apiece on the BSE.
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