- 22 May 2024
- ICICI Securities
JK Tyre Industries reports a tad muted performance in Q4FY24
JKTYRE - 400 Change: -2.40 (-0.60 %)News: Consolidated sales for the quarter came at ₹ 3,699 crore, up 2% YoY. EBITDA for the quarter came in at ₹ 481 crore with corresponding EBITDA margin at 13% (down 190 bps QoQ). PAT in Q4FY24 was at ₹ 169 crores, down 23% QoQ. Standalone EBITDA margins stood at 12.7% (down 150 bps QoQ). On full year basis, for FY24, the company reported a topline of ₹15,002 crore (up 2% YoY), EBITDA of ₹ 2078 crore (margins at 13.8%, up 490 bps YoY) and PAT of ₹ 786 crore (up 200% YoY).
Views: Company’s gross margin performance was stable and was broadly in-line with peers with higher other expenses denting the overall margin profile. Higher other expenses were driven by provisions made by the company on account of Extended Producer Responsibility {EPR) for Waste Tyre applicable to Tyre manufacturers and Recyclers, and was in tandem with numbers reported by its peer-set. Management commentary on margin recovery and demand growth trajectory will be the key monitorable going forward.
Impact: Neutral