JK Tyre revenue up 31%, crossed Rs.12,000 crore in FY22
Mumbai, May 2022: Indian Tyre Industry major, JK Tyre & Industries Ltd. (JK Tyre) announced its audited results for FY2021-22. The Board has recommended a dividend @ 75% (Rs.1.50 per share having face value of Rs.2 each)
Commenting on the results, Dr. Raghupati Singhania, Chairman and Managing Director (CMD), said, “JK Tyre achieved highest ever revenue of Rs.12,000 crore in FY2022. There is a good demand pick-up post unlocking of the Covid restrictions, resulting in higher volumes in commercial vehicle and passenger car tyre segments. Exports contributed significantly to the top-line and were higher by about 60% viz-a-viz last year”.
He added “The extraordinary input cost increase in FY-22 has impacted our margins despite all round cost reduction and efficiency improvement measures as well as price increases taken from time to time in all tyre categories. We hope that the inflationary pressures will taper down post resolution of the geopolitical tensions and supply chain disruptions.
The company’s subsidiaries – Cavendish Industries Ltd. and JK Tornel, Mexico have made significant contribution to the revenues. Both the entities have attained all time high sales for FY-22. We believe this trend should continue in future as well.
We are optimistic on the outlook of the Tyre Industry as we see improved infrastructural activities, higher automotive demand and better external environment. The company has undertaken an expansion of its PCR capacity at a cost of Rs. 530 Cr. The additional volumes are expected to be available by end of 2023 and will enhance sales and profitability.
Dr. Singhania further added that, “We are committed to remain a sustainable company with focus on conserving resources, offering advanced and differentiated products in the market.”