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JK Tyre: JK Tyre & Industries plans Rs 1025 crore investment to expand production capacity

JK Tyre & Industries is looking at investing Rs 1025 crore to expand production capacity by a fifth to meet burgeoning demand for tyres in the domestic automotive market.

The company – which currently is utilising 95% of its available capacity of 155.11 lakh tyres per annum- plans to expand capacity by about 20% by October 2025. The expansion is proposed to be funded by way of equity/internal accruals and debt.

Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries told ET, the company is planning fresh investments to increase capacity amid robust demand in the local market.

JK Tyre & Industries Wednesday reported a nearly five-fold increase in consolidated net profit for the second quarter at Rs 249 crore, compared to about Rs 50 crore registered in the same period last fiscal on back of operational efficiencies, product premiumisation across segments and softening of raw material prices,

On a consolidated basis, net revenue went up 4% to Rs 3,905 crore, from Rs 3,764 crore in Q2FY23. EBITDA (Earnings before interest, tax, depreciation and amortisation) increased to Rs 597 crore, as against Rs 305 crore in the year-ago period.

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