JK Tyre & Industries (530007) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated net profit rose 33% year-over-year to INR 212 crore, with margin expansion and premiumization strategies driving profitability.

• Q1 FY25 consolidated revenue was INR 3,655 crore, with EBITDA of INR 516 crore (up 11% year-over-year).

• Maintains leadership in truck/bus radial and EV bus tire segments, expanding global presence in over 100 countries.

• Strategic focus on premium products, digitalization, and EV-oriented technology, with new brand shops and fleet customer expansion.

• FY24 consolidated revenue reached INR 15,046 crore, with PAT of INR 811 crore (up 207%).

Financial highlights

• Q1 FY25 consolidated revenue was INR 3,655 crore; EBITDA margin expanded to 14.1% from 12.5% year-over-year.

• Q1 FY25 net profit after tax was INR 218.30 crore, up from INR 158.59 crore in Q1 FY24.

• Cash profit increased 18% to INR 403 crore; interest cost declined 8% to INR 112 crore.

• Basic EPS for Q1 FY25 was INR 7.72, up from INR 5.93 year-over-year.

• ROCE at 15.4% and ROE at 20%; net debt at INR 3,832 crore, up 3% sequentially due to working capital needs.

Outlook and guidance

• Expectation of mid- to high-single-digit consolidated revenue growth for FY25, with recovery anticipated in H2.

• Focus on expanding volumes in replacement and export segments, and increasing sales of EV tyres domestically and internationally.

• Positive outlook for tire demand, supported by policy reforms, infrastructure focus, festive season, and favorable monsoon.

• Plans to further deleverage the balance sheet and maximize benefits from recent acquisitions.

• Emphasis on premiumization and technological advancement in product portfolio.