What drove the tyre recovery in FY23?

FY23 must have made tyre manufacturers in India happy. The industry faced major challenges in FY22 because of higher raw material costs and deteriorating profitability. However, the industry recorded a strong revival in FY23 thanks to strong volume growth and lower raw materials costs. All major companies, except Balkrishna Industries , reported double-digit growth in revenue and net profit in FY23. Likewise, the market has responded kindly, with nearly all these companies generating a stellar one-year return for shareholders. FY23 performance of tyre makers Market rewards their financial performance Company M-cap (₹ cr) Revenue growth (%) Net profit growth (%) 1Y share price return (%) Apollo Tyres 26426 17.3 73 132.1 Ceat 8093 20.8 316.4 115.8 JK Tyre