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

Executive summary

• Q1 FY25 net profit rose 33% year-over-year to INR 212 crore, driven by margin expansion, premiumization, and strong export growth.

• Consolidated Q1 FY25 revenue was INR 3,655 crore, with EBITDA of INR 516 crore, and continued leadership in truck/bus radial segment.

• Strategic focus on premium products, brand building, digital campaigns, and EV segment expansion, including new EV-specific tyre launches and smart tyre technologies.

• Received multiple accolades for brand strength, sustainability, and ESG, including 'Best in Class' ESG rating and ISCC Plus Certification.

• Revenue remained flat year-over-year due to lower OEM sales, offset by strong export growth and stable replacement segment sales.

Financial highlights

• Q1 FY25 consolidated revenue was INR 3,655 crore; EBITDA margin expanded to 14.1% from 12.5% year-over-year; EBITDA grew 11% to INR 516 crore.

• Net profit after tax for Q1 FY25 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 5.93 year-over-year.

• Net debt at quarter-end was 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 as OEM demand rebounds.

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

• Raw material costs expected to rise 5%-6% in Q2; further price hikes under consideration to offset inflation.

• Emphasis on premiumization, technological advancement, and deleveraging the balance sheet.