Tyre manufacturer JK Tyre & Industries Ltd, posted a consolidated profit after tax of Rs 144 crore for the quarter ended September 30, a 42.3% decline on-year. Its revenue for the quarter declined 7% to 36.22 billion rupees.
The company reported an EBITDA of Rs 443 crore for the second quarter, a 25.8% decline year-on-year. It reported an EBITDA margin of 12.2%. The profit before tax (PBT) stood at Rs 199 crore. Its expenditure on raw material increased to Rs 2,400.6 crore from Rs 2,199.4 crore in the same quarter previous year.
For the half-year ended September, JK Tyre posted net profit of Rs 355.99 crore, down from Rs 409.59 crore in the previous half-year. Its revenue for the period declined by 4.6% on-year to Rs 7260.64.
The quarterly results were affected due to a sharp rise in natural rubber prices, which caused operating profit margins to fall. These price increases were driven by adverse weather conditions and supply chain disruptions. However, JK Tyre implemented mitigation strategies through judicious price increases, product premiumisation and strategic inventory build-up, the company said in a press release.
Dr Raghupati Singhania, Chairman and Managing Director said, "Commercial vehicle segment also witnessed slackening attributable to general election and unusual heavy rains affecting revenue growth during the quarter. Improved export performance helped partly offset the domestic slowdown.” The company continues to maintain its leadership position across all OEM and Replacement markets in the EV Bus category.
The company's subsidiaries, Cavendish Industries Ltd (CIL) and JK Tornel, Mexico, made significant contributions to overall revenues and profitability. Looking ahead, the company anticipates improved demand in the second half of the year, driven by the upcoming festive season, resumption of government infrastructure spending, and normalisation of construction, industrial and mining activities post-heavy rainy season.
The company operates 11 globally benchmarked sustainable manufacturing facilities - nine in India and two in Mexico - with a collective annual production capacity of around 35 million tyres. The company exports to approximately 100 countries through over 230 global distributors.
JK Tyre produced its 30 millionth Truck/Bus Radial tyre, becoming the first Indian company to reach this landmark. The company's commitment to innovation is evident through its state-of-the-art global research and technology centre, the Raghupati Singhania Centre of Excellence in Mysore