New Delhi, Jun 14 (IANS): Tyre major JK Tyre has reduced net debt by Rs 930 crore in FY21 through higher cash accruals, along with funds released due to better working capital management.

The company is focusing on prudent capital allocation and tight management of its working capital to ensure accelerated de-leveraging going forward.

"The company has reduced substantially the net debt by Rs 930 crore in FY21 through higher cash accruals and funds released due to better working capital management, which is a reduction of 17 per cent compared to last year and the finance cost is lower by 15 per cent approximately."

"The net debt to Ebdita has improved significantly to 3.32x in FY21 from 5.33x earlier and net debt to equity improved to 1.61x in FY21 from 2.23x in last year. The Company is on track to reduce its long-term debt to a level of 55 per cent approximately by FY'24."

Going forward, the company is planning to incur Rs 200 crore over the next 2 years by way of de-bottlenecking its plants to increase capacities, to be funded through internal accruals.

"There would be sufficient operational capacities through the proposed de-bottlenecking to cater to higher demand for its products."

"JK Tyre is presently keeping a close watch on the current demand scenario and shall take decision on further expansions at the appropriate time."