Companies

JK Tyre Q2 net down 41% to ₹65 cr on rising input costs

Our Bureau New Delhi | Updated on October 28, 2021

Raghupati Singhania, CMD, JK Tyre   -  PTI

Consolidated revenue grew 31% to ₹2,987 crore

Leading tyre maker JK Tyre & Industries on Thursday reported 41 per cent year-on-year (YoY) decline in consolidated net profit for the second quarter ended September 30, at ₹65 crore compared with ₹110 crore in the corresponding period last year.

However, consolidated revenue grew 31 per cent to ₹2,987 crore (₹2,275 crore).

“JK Tyre has been attaining continuous sales growth despite partially disrupted market place. The sales in the replacement market registered healthy growth whereas institutional sales recorded a quantum jump during the quarter,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said in a statement.

He said the company’s continued thrust resulted in 35 per cent rise in exports.

However, “The rising input costs impacted operating margins. This could be partially mitigated through enhanced volumes and selective price increases,” he said.

The company’s subsidiary Cavendish Industries continues to contribute to revenue growth and JK Tornel, the subsidiary in Mexico, too performed well with significant growth in revenues and profitability, he said.

Shares of JK Tyre closed at ₹149.60 apiece on the BSE on Thursday, down 3.36 per cent from the previous close.

Published on October 28, 2021

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