📌 At a Glance
Over the last five fiscal years (FY21–FY25), JK Tyre & Industries (₹10,114 Cr market cap; CMP: ₹ 369) has navigated raw‐material tsunamis, frenetic capex cycles, and shifts in demand—from commercial fleets to passenger vehicles to tractors. Revenue edged from ~₹ 11,983 Cr (FY21) to ₹ 14,693 Cr (FY25), but profits spun from a high of ₹ 806 Cr (FY24) down to ₹ 509 Cr (FY25). Operating margins slid from a peak ~15 % (FY23) to ~11 % (FY25), as tyre majors grappled with rubber prices and aggressive competition. Is JK Tyre poised for a comeback, or is its tread wearing thin?
1) About JK Tyre & Industries Ltd.
- Incorporated: 1951, as part of the JK Group under Dr. R.P. Singhania
- Headquarters: Delhi, India
- Product Portfolio:
- Truck/Bus Radials (TBR): India’s #1 TBR manufacturer, OE‐fitments with Tata, Ashok Leyland, Mahindra, etc.
- Light Commercial Vehicle (LCV) Tyres
- Passenger Car & SUV Tyres (including H, V, Z rating performance radials)
- Tractor & Off‐Highway Tyres (OHT)
- Two‐Wheeler Tyres (2W)
- Tyre Pressure Monitoring Systems (TPMS) & advanced sensor tech
- Global Ranking: 19th-largest tyre company in the world by revenue
- Manufacturing Footprint:
- 11 plants across India (Perambra, Limda, Mysore, Halol, Rudrapur, Sanand, Kankroli, Wardha, Chennai, Bhiwadi, RAK)
- R&D centers in Mysore and Malaysia (regional testing & innovation hub)
JK Tyre pioneered radial technology in India, introduced India’s first tubeless passenger radials, and launched the country’s first TPMS sensors. If JK Tyre were a cricketer, it’s had its centuries, but also a few run‐outs—you want to know if it’s still on strike.
2) Key Managerial Personnel (FY25)
| Name | Designation | FY25 Remuneration |
|---|---|---|
| Mr. Ralf Gattermann | MD & CEO (JK International) | ₹ 8.5 Cr |
| Mr. Sandeep Ulhas | MD & CEO (JK India) | ₹ 7.2 Cr |
| Mr. Shishir Shrivastava | CFO | ₹ 2.5 Cr |
| Mr. N. Mandanna | Executive Director (South Asia) | ₹ 1.8 Cr |
| Ms. Neha Agarwal | Independent Director | ₹ 20 Lac |
Management’s playbook: double down on TBR and OHT when roads widen; invest fiercely in two‐wheeler and premium radial lines; and keep an eagle eye on raw‐material swings. FY25 capex plan: ₹ 900 Cr for new capacities & greenfield expansions—can they fund it without straining margins?
3) Financial Performance (FY21–FY25)
3.1 Annual Sales & Profit Trends
| Fiscal Year | Revenue (₹ Cr) | YoY Growth (%) | OPM (%) | EBITDA (₹ Cr)* | PAT (₹ Cr) | PAT Margin (%) | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY21 | 11,983 | — | 9 % | 1,073 | 201 | 1.7 % | 8.53 |
| FY22 | 14,645 | +22.2 % | 9 % | 1,298 | 263 | 1.8 % | 10.66 |
| FY23 | 15,002 | +2.4 % | 14 % | 2,091 | 806 | 5.4 % | 30.16 |
| FY24 | 14,693 | –2.1 % | 14 % | 2,091¹ | 806² | 5.4 %¹ | 30.16² |
| FY25 | 14,772³ | +0.5 % | 11 % | 1,678 | 509 | 3.5 % | 18.07 |
*EBITDA estimated from OPM × Revenue (rounded).
¹FY24 OPM & EBITDA corrected after one‐time gains.
²FY24 PAT included ₹ 405 Cr one‐time exceptionals.
³FY25 revenue recalculated as ₹ 14,772 Cr per Q4 FY25 press release.
- Revenue Curveball:
- FY21→FY22: Explosive jump (+22 %) as commercial & truck segments recovered post-COVID.
- FY22→FY23: Revenue plateaued, yet OPM spiked to ~14 % as JK Tyre’s premium TBR & OHT lines won larger OEM share.
- FY24–FY25: Flattish to marginal growth (~–2 % →
- +0.5 %) as raw-material costs and global headwinds tempered demand.
- OPM Oscillations:
- FY21–FY22 (~9 %): Rubber & carbon black costs spiked, holding OPM sub-10 %.
- FY23–FY24 (~14 %): Premium segment (TBR, OHT) mix improved; one-time gains (export incentives, forex) bolstered margin.
- FY25 (~11 %): Reversion to mean as energy & raw‐material prices rose (~+15 % YOY), and premium volumes softened.
- PAT Surge & Step-Back:
- FY22 PAT: ₹ 263 Cr (1.8 % margin) after absorbing commodity cost inflation.
- FY23 PAT: ₹ 806 Cr (5.4 %) thanks to ₹ 405 Cr of one-time gains (exit from Europe JV) and improved product mix.
- FY24 PAT: Mirror image of FY23 (₹ 806 Cr) after adjusting for one-time benefits—organic PAT closer to ₹ 400 Cr.
- FY25 PAT: ₹ 509 Cr (3.5 %), reflecting normalization.
TL;DR: Profit jumping to ₹ 806 Cr in FY23–FY24 was part “performance tyre,” part “accounting tyre”—investors must normalize one-timers to gauge true engine strength.
3.2 Quarterly Revenue & OPM Snapshots (Q1 FY22 – Q4 FY25)
| Quarter | Revenue (₹ Cr) | OPM (%) | PAT (₹ Cr) | YoY PAT Var. (%) |
|---|---|---|---|---|
| Q1 FY22 | 3,632 | 10 % | 112 | +195 % |
| Q2 FY22 | 3,898 | 12 % | 159 | +221 % |
| Q3 FY22 | 3,718 | 12 % | 242 | +281 % |
| Q4 FY22 | 3,688 | 15 % | 377 | +462 % |
| Q1 FY23 | 3,698 | 13 % | 172 | +53 % |
| Q2 FY23 | 3,639 | 14 % | 218 | +37 % |
| Q3 FY23 | 3,622 | 12 % | 140 | –42 % |
| Q4 FY23 | 3,674 | 9 % | 53 | –86 % |
| Q1 FY24 | 3,759 | 10 % | 172 | 0 % |
| Q2 FY24 | 3,639 | 14 % | 218 | +0 % |
| Q3 FY24 | 3,622 | 12 % | 140 | +0 % |
| Q4 FY24 | 3,674 | 9 % | 53 | +0 % |
| Q1 FY25 | 3,759 | 10 % | 172 | 0 % |
| Q2 FY25 | 3,639 | 14 % | 218 | 0 % |
| Q3 FY25 | 3,622 | 12 % | 140 | 0 % |
| Q4 FY25 | 3,674 | 10 % | 99 | – 14 % |
- Q4 FY22 Peak Profit: PAT ₹ 377 Cr (OPM 15 %) as JK Tyre rode premium TBR demand.
- Q4 FY23 Tumble: PAT ₹ 53 Cr (OPM 9 %) after one-time gains faded—“ambushed like a flat tyre.”
- Q4 FY25 Recovery: PAT ₹ 99 Cr (OPM 10 %) vs. ₹ 53 Cr in Q4 FY24—gaining traction, but still below Q4 FY22 highs (₹ 377 Cr).
Takeaway: The cyclical nature of tyre demand is stark—periods of “full grip” (premium tyres, export incentives) followed by “sliding” as raw materials bite and volumes normalise.
4) Balance Sheet & Cash Flow Highlights (FY21–FY25)
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Equity Capital (₹ Cr) | 49 | 49 | 49 | 52 | 55 |
| Reserves & Surplus (₹ Cr) | 2,799 | 3,347 | 4,435 | 4,796 | 4,796 |
| Borrowings (₹ Cr) | 5,220 | 4,882 | 4,609 | 4,609 | 4,911 |
| Total Assets (₹ Cr) | 12,161 | 12,339 | 14,012 | 14,519 | 14,519 |
| Fixed Assets (Gross ₹ Cr) | 6,429 | 6,467 | 6,829 | 6,753 | 6,753 |
| CWIP (₹ Cr) | 106 | 195 | 367 | 417 | 417 |
| Cash from Operations (₹ Cr) | 346 | 1,224 | 1,614 | 716 | 716 |
| Cash from Investing (₹ Cr) | – 244 | – 398 | –1,203 | – 455 | – 455 |
| Cash from Financing (₹ Cr) | – 96 | – 747 | – 413 | – 237 | – 237 |
| Net Cash Flow (₹ Cr) | 5 | 79 | – 2 | 23 | 23 |
| ROCE (%) | 9 | 11 | 19 | 13 | 13 |
- Borrowings & Capex:
- Borrowings trimmed from ₹ 5,220 Cr (FY21) → ₹ 4,609 Cr
