JK Tyre & Industries Ltd (JKTIL) on Thursday reported a consolidated net profit of ₹34 crore for the fourth quarter ended March 31, down 79 per cent year on year (YoY) compared with ₹159 crore in the corresponding period last year due to high raw material prices.

However, revenue from operations during the period grew by 18 per cent YoY to ₹2,706 crore as against ₹2,284 crore during January-March 2018.

The company’s board has also recommended a dividend of ₹1.50 per equity share (75 per cent) for the financial year ended March.

Cavendish boost

Volumes grew 20 per cent in the second half of the year despite a slowdown in the automotive sectorthe company said, adding that it could boost its market presence across categories, driven by the high capacity utilisation at Cavendish, a recently acquired subsidiary. Furthermore, sales in the two- and three-wheeler segment grew over 40 per cent, and the company has established itself as a recognised player in this segment as well, which it entered only recently.

JK Tornel, Mexico, another subsidiary, continues to perform well. The company recently made a preferential allotment of equity shares to the promoter group for an amount aggregating ₹200 crore, which adds to its networth, it said.

For the whole year, the company reported a net profit of around ₹171 crore, up more than 2.5 times against ₹63 crore in financial year 2017-18. Revenue from operations also grew to ₹10,370 crore compared with ₹8,397 crore in the previous year.

“FY19 was indeed a landmark year for the company. JK Tyre’s sales crossed the ₹10,000-crore mark, while the company achieved a robust growth of 24 per cent over the previous year, surpassing the industry growth. Despite Q4 profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35 per cent,” Raghupati Singhania, Chairman and Managing Director, said.

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