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News: Consolidated sales for the quarter came at ₹ 3,639 crore, down 2% YoY. EBITDA for the quarter came in at ₹ 500 crore with corresponding EBITDA margin at 13.7% (up 70 bps QoQ). PAT in Q1FY25 was at ₹ 211 crores, up 37% YoY. Standalone EBITDA margins stood at 12.3% (down 40 bps QoQ).
Views: Company’s gross margin performance was better than listed peer which reported ~290 bps contraction on QoQ basis with JK tyres standalone reporting ~60 bps decline on QoQ basis. Topline growth however on standalone basis was tepid at 1% YoY. With unprecedent rise in natural rubber prices in the recent past (currently quoting at ₹ 230/kg) and partial pass thru of it through price hikes, the near-term margin performance at tyre companies is muted. Management commentary on margin recovery and demand growth trajectory will be the key monitorable going forward.
Impact: Neutral