JK Tyre Industries net profit boosts more than two folds in Q1FY16

JK Tyre Industries (JKTIL) recently declared their June 2015 quarter results. The company's total income declined by 4.67 per cent to Rs 1777 crore in Q1FY16 as compared to the same period in previous financial year. Its total expenditure decreased by 11.48 per cent to Rs 1480 crore in Q1FY16 on yearly basis. JKTIL's total expenditure declined predominantly due to a 15.4 per cent reduction in raw material prices during Q1FY16.

The EBITDA of JKTIL boosted by 54.61 per cent to Rs 297 crore in Q1FY16 as compared to same period in previous fiscal year. The company's EBITDA margin expanded by 641 basis points to 16.73 per cent because of reduction in raw material prices in Q1FY16 on yearly basis. Its EBIT rose by 65.83 per cent to Rs 254 crore in Q1FY16 on yearly basis though its depreciation expense increased by 10.9 per cent to Rs 43.56 crore during the quarter. The net profit of JKTIL increased by 113.06 per cent to Rs 118.12 crore in Q1FY16 from Rs 55.44 crore in Q1FY15. The company's net profit margin expanded by 368 basis points to 6.65 per cent in Q1FY16 on yearly basis.

Considering geographical segment wise revenue JKTIL earned 84 per cent from the India segment and remaining 16 per cent from Mexico segment during June 2015 quarter. The company launched its highly advanced SUV multi-terrain tyres like 'Ranger.' It will also be exporting these new range of tyres.

The JKTIL shareholding pattern indicates that FII holdings contracted by 199 basis points to 12.32 per cent and DII holdings also contracted by 12 basis points to 2.6 per cent in June 2015 quarter. The share price of the company on BSE increased by 4.23 per cent and trading at Rs 124.15 on intraday basis.

JKTIL is engaged in the business of manufacturing of automotive tires, tubes and flaps. The company has varied business segments namely Tyre, Tubes & Flaps. Its product range include tyres for passenger cars, farm tyres, commercial tyres for trucks, buses, light commercial vehicles (LCV), small commercial vehicles (SCV) and off the road tyres. JKTIL has 6 manufacturing plants are located at five centers, which include Kankroli in Rajasthan, Banmore in Madhya Pradesh, Mysore Plant I , Mysore Plant II, Mysore Plant III at Karnataka. The company has 3 plants in Mexico. Its total capacity across 9 plants has crossed the milestone of 20 million tyres per annum.