New Delhi, Feb 4 (PTI): JK Tyre & Industries has reported a significant decline of 75% in its consolidated profit after tax (PAT) for the December quarter, totaling Rs 57 crore. This sharp drop in earnings was attributed to increasing raw material costs, particularly the rise in natural rubber prices.
For the same period in the previous fiscal year, the company had posted a PAT of Rs 227 crore.
In its regulatory filing, JK Tyre revealed that revenue from operations for the third quarter stood at Rs 3,674 crore, slightly lower than the Rs 3,688 crore recorded in the corresponding quarter of the previous year.
Raghupati Singhania, Chairman & Managing Director of JK Tyre, attributed the decline in margins to escalating raw material costs, especially natural rubber. However, he noted that the company managed to counter some of the impact through strategic price revisions and cost optimization efforts.
Despite these challenges, Singhania expressed optimism for the future. "The replacement market shows promising demand, and the original equipment manufacturer (OEM) sector is on a recovery path," he said. He also pointed out that favorable rupee-dollar parity has opened up new growth opportunities in export markets.
Looking ahead, JK Tyre is focusing on enhancing the premiumization of its product range across different segments, which is expected to drive profitability in the long term.
Additionally, the company's subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel in Mexico, continued to contribute positively to its overall revenue and profit.
In a strategic move, JK Tyre’s board has also approved an increase in its stake in Treel Mobility Solutions, an associate company, from 26% to 66%.
The company’s shares ended 0.88% higher at Rs 313.55 on the Bombay Stock Exchange (BSE).
For the same period in the previous fiscal year, the company had posted a PAT of Rs 227 crore.
In its regulatory filing, JK Tyre revealed that revenue from operations for the third quarter stood at Rs 3,674 crore, slightly lower than the Rs 3,688 crore recorded in the corresponding quarter of the previous year.
Raghupati Singhania, Chairman & Managing Director of JK Tyre, attributed the decline in margins to escalating raw material costs, especially natural rubber. However, he noted that the company managed to counter some of the impact through strategic price revisions and cost optimization efforts.
Despite these challenges, Singhania expressed optimism for the future. "The replacement market shows promising demand, and the original equipment manufacturer (OEM) sector is on a recovery path," he said. He also pointed out that favorable rupee-dollar parity has opened up new growth opportunities in export markets.
Looking ahead, JK Tyre is focusing on enhancing the premiumization of its product range across different segments, which is expected to drive profitability in the long term.
Additionally, the company's subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel in Mexico, continued to contribute positively to its overall revenue and profit.
In a strategic move, JK Tyre’s board has also approved an increase in its stake in Treel Mobility Solutions, an associate company, from 26% to 66%.
The company’s shares ended 0.88% higher at Rs 313.55 on the Bombay Stock Exchange (BSE).
