Ind-Ra Upgrades JK Tyre's Rating To ‘IND A+/Stable’

India Ratings and Research (Ind-Ra) has upgraded JK Tyre & Industries’s (JKTIL) Long-Term Issuer Rating to ‘IND A+’ from ‘IND A’. The rating outlook has also been revised to Stable from Negative.

JK Tyre’ said this upgrade echoes a significant improvement in the company’s credit metrics on account of improved profitability and better working capital management.

In FY23, JK Tyre achieved Y-o-Y revenue growth of 22 per cent. These include a favourable change in the product mix, higher sales volume, improved realisations and strategic management initiatives. The company focused on premiumisation across different segments, expanded the customer base, and introduced newer tyre categories such as Smart tyres, Puncture Guard tyres, luxury car tyres and EV tyres. 

India Ratings expects the company to continue its positive trajectory, including a reduction in net leverage below 3.0x by FY'24.