JK Tyre & Industries on Friday has reported a consolidated net profit of ₹38 crore in fourth quarter ending March, a decline of 80 per cent year-on-year (y-o-y) as compared with ₹195 crore in a year ago period.
However, its consolidated revenue from operations grew by 13 per cent y-o-yto ₹3,312 crore during the quarter against ₹2,927 crore in January-March quarter 2021.
Meanwhile the Board of the company has recommended a dividend at 75 per cent (₹1.50 per share with a face value of ₹2 each).
“JK Tyre achieved highest ever revenue of ₹12,000 crore in FY22. There is a good demand pick-up post unlocking of the Covid restrictions, resulting in higher volumes in commercial vehicle and passenger car tyre segments. Exports contributed significantly to the top-line and were higher by about 60 per cent viz-a-viz last year (financial year)," Raghupati Singhania, Chairman and Managing Director, JK Tyre, said.
The extraordinary input cost increase in the financial year 2021-22 has impacted the company's margins despite all round cost reduction and efficiency improvement measures as well as price increases taken from time to time in all tyre categories, he said.
"We hope that the inflationary pressures will taper down post resolution of the geopolitical tensions and supply chain disruptions. The company’s subsidiaries–Cavendish Industries and JK Tornel, Mexico have made significant contribution to the revenues. Both the entities have attained all time high sales for FY 2021-22. We believe this trend should continue in future as well," he added.