JK Tyres and Industries posts impressive profits

JK Tyres and Industries Ltd., on May 16 has declared its Q4FY16 results. JK Tyres for the March quarter has reported a net profit of Rs 116.77 crores. Net profits have seen a surge of 10 per cent as compared to Q4FY15. EBITDA for the period stands at Rs 269.55 crores. Consolidated total income from operations stands at Rs 1748.59 crores for the quarter, as against Rs 1809.36 crores for the corresponding period of the previous fiscal.

On a YoY basis, net profits after minority interest stand at Rs 463.8 crores, whereas for the previous fiscal it stood at Rs 329.66 crores. Net profit has increased by 41 per cent. EBITDA stands at Rs 1141.5 crores and has increased by 23 per cent from the previous year. Consolidated total income for the period stands at Rs 6953.12 crores.

On a CAGR basis, EBITDA and net profits for a period of 3 years have grown by 14 per cent and 33 per cent, respectively.

The company has posted a weaker sales volume due to lower demand; and due to dumping of cheaper Chinese tyres. However, the company has managed to post robust profit margins amid various challenges faced. The company has posted double digit figures despite a general rise in the cost of rubber.JK Tyre & Industries Ltd., is an Indian Tyre and tube manufacturing company belonging to the JK group. The company’s operation business segment consists of tyres, tubes and flaps. The shares on the bourses on Tuesday, have opened positive and are trading at Rs 85.75, up by 2.02 per cent.