Shares of JK Tyre and Industries jumped up to an all-time high on Thursday after the flagship JK Group company posted a more than 4 times surge in its consolidated net profit for the September 2023 quarter, exceeding market expectations.

The consolidated net profit of the company witnessed a massive 412% year-on-year (YoY) growth at Rs 250.25 crore for the July-September period of FY24, driven by strong operating performance and lower input costs. The net profit was Rs 48.84 crore in the corresponding period last year and Rs 158.59 crore in the preceding June quarter.

Although the company’s revenue from operations showed marginal growth at Rs 3,897 crore in Q2FY24, compared to Rs 3,756 crore in the same quarter last fiscal, its operating profit grew over 95% to Rs 597 crore in the quarter under review from Rs 305 crore in the year-ago quarter.

The third largest tyre manufacturer in the country, JK Tyre Industries’ product portfolio includes automotive tyres for two-wheelers, three-wheelers, passenger cars, utility vehicles (UVs), trucks and buses, and off-the-highway (OHT) vehicles.

The company attributed this improvement in its financial results to enhanced operational efficiencies, product premiumisation, and favourable movements in raw material prices. 

JK Tyre shares peaked at Rs 351.25, up nearly 14% from the previous closing price on the National Stock Exchange (NSE). At 01:15 pm, the stock was trading 9.04% higher at Rs 336.