JK Tyre stock soars 14% to all time high as net profit rises 398% in Q2
JK Tyre and Industries, the flagship company of the JK Group, surged over 14% during intraday trading on Thursday, reaching an all-time high. This impressive performance came on the heels of the company's September quarter earnings, which exceeded market expectations. On Wednesday, the company posted a 398% surge in its consolidated net profit to ₹249 crore.
In the same period of last year, the company reported a net profit of ₹50 crore, and in the preceding June quarter, it recorded a net profit of ₹159 crore. The revenue from operations surged to ₹3,905 crore in Q2FY24, compared to ₹3,726 crore in a similar quarter last fiscal. It reported an operating profit of ₹597 crore in Q2, an increase of 96% when compared to ₹305 crore in the year-ago quarter.
The EBITDA margin reached 15.3% in Q2, demonstrating significant year-over-year growth of 718 basis points (bps) and 280 basis points (bps) quarter-over-quarter. This improvement was attributed to enhanced operational efficiencies, product premiumization, and favorable movements in raw material prices, the company said in its earnings report. Also Read: Tyre makers brace for margin squeeze as oil prices soar Domestic sales volumes showed an 8% increase in Q2, compared to the corresponding quarter.
Notably, the company's net debt decreased from ₹4,518 crore as of March 2023 to ₹4,087 crore as of September 2023, marking a reduction of ₹431 crore. Following the company's impressive numbers, JK Tyre and Industries saw a robust start to Thursday's trading session, with its stock opening at ₹344 per share, a significant increase from the previous day's close at ₹308.15. It continued to perform well, reaching a peak of ₹351.25 per share, reflecting a remarkable 14.02% increase.
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