The tyre maker's consolidated net profit rose 15.2% to Rs 65.59 crore on 17.5% increase in net sales to Rs 3,612.92 crore in Q3 FY23 over Q3 FY22.
Profit before exceptional items and tax was at Rs 126.86 crore in Q3 FY23, recording a growth of 55.66% from Rs 81.50 crore reported in the same period a year ago. The company reported exceptional items of Rs 14.13 crore in Q3 FY23. The company said that the exceptional items primarily represent unrealized forex loss caused by recent volatility in exchange rates and consequential re-instatement of foreign currency items. It also includes Rs 1.04 crore towards VRS expense.
EBITDA grew 24.2% year on year to Rs 349 crore in the quarter ended 31 December 2022. EBITDA margin rose to 9.6% in Q3 FY23 as compared with 9.1% recorded in the same period last year.
Dr. Raghupati Singhania, chairman and managing director (CMD), said, We continued to maintain our profitability growth in yet another quarter with strong performance across the segments with double digit revenue growth. Our profit margins improved, supported by softening in raw material prices, continued focus on cost control and timely price revisions. Going forward, we believe, tyre industry is set to witness healthy demand in the domestic market emanating from improved vehicle utilization and thrust on infrastructural development.
Meanwhile, the company's board has approved the issuance of 24,000 compulsorily convertible debentures (carrying an interest at the rate of 6% per annum, compounded cumulatively on a quarterly basis) to International Finance Corporation (Acquirer) by way of a preferential issue on a private placement basis, for raising an amount aggregating up to Rs 240 crore, which shall be convertible into equity shares of the company at a conversion price of Rs 180.50 each.
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JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.
Shares of JK Tyre & Industries slipped 3.97% to Rs 160.95 on the BSE.
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