JK Tyres reports healthy Q1FY23 numbersJKTYRE - 357 Change: 3.10 (0.88 %)
News: Consolidated sales for the quarter came in at Rs 3,643 crore, up 10% QoQ. EBITDA for the quarter came in at Rs 285 crore with corresponding EBITDA margin at 7.8% (up 90 bps QoQ). PAT in Q1FY23 was at Rs 37.2 crore, down 7% QoQ. Standalone EBITDA margins were at 7.3% (up ~110 bps QoQ).
View: The company began the year on positive note with gross margin declining 50 bps sequentially (at the consol level) incorporating price hike taken by the company to extent of 4-5% to offset inflation. Management commentary on demand outlook was healthy but margins were seen muted in coming quarter. The company is executing capacity expansion in TBR and PCR domains, which is likely to keep overall debt at elevated levels in the near term.