Shares of JK Tyre & Industries surged on Thursday after the company put out strong financial numbers for the second quarter and announced fresh capital expaditure.

What Happened: Recognizing the market’s demand, JK Tyre announced a fresh capital expenditure of ₹1,025 crore, scheduled for completion by October 2025, planned through equity, internal accruals, and debt. The board also approved raising funds of up to ₹500 crore via qualified institutions placement or other permissible modes.

JK Tyre noted the positive growth in the Indian auto industry and aims to expand its presence in the automotive tyre market to capitalize on this growth.

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The Numbers: In the second quarter, JK Tyre reported a nearly five-fold increase in consolidated profit after tax, which reached ₹249 crore, compared to ₹50 crore in the same period the previous year. EBITDA also rose by 95.7% year-on-year, reaching ₹589 crore, with an EBITDA margin of 15.1%, marking an increase of 718 basis points compared to the previous year.

Consolidated turnover grew by 4% year-on-year to reach ₹3,905 crore. The company’s strategic focus on enriching its product mix across its entire Radial range, delivered positive results.

JK Tyre demonstrated a healthy cash flow from operating activities the first half. This, in turn, led to free cash flow and a reduction in gross debt, amounting to around ₹700 crore and ₹450 crore, respectively.

The company’s gross margin performance exceeded expectations and came out robust, according to ICICI Securities.

Price Action: JK Tyre’s share price was up nearly 10% at ₹338.90 in early trade on Thursday.

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