JK Tyre Q2 PAT Down 42% to Rs 144.25 Cr

Mumbai, Nov 5 (PTI) JK Tyre & Industries on Tuesday reported a 42 per cent decline in consolidated Profit After Tax (PAT) to Rs 144.25 crore in the September quarter.

The company had posted a consolidated PAT of Rs 250.25 crore in the year-ago period, according to a regulatory filing.

The total income for the quarter declined 6.7 per cent to Rs 3,643.15 crore in the second quarter of the current fiscal year from Rs 3,905.32-crore in the corresponding quarter of the previous fiscal year, as per the filing.

The company's operating profit margins were affected by a sharp rise in natural rubber prices, driven by adverse weather conditions and supply chain disruptions, the company said in a statement.

The company also said it continues to enjoy the highest market share across all OEM and replacement markets in electric vehicle bus category.

"JK Tyre maintained its volumes and presence in the passenger car segment despite lower demand in the category. Commercial vehicle segment also witnessed slackening attributable to general election and unusual heavy rains affecting revenue growth during the quarter," Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries, said.

Improved export performance helped partly offset the domestic slowdown, Singhania added.

He said the impact of sharp rise in natural rubber prices, was partially mitigated through judicious price increase, product premiumisation, and strategic inventory build-up.

"As we move into the second half of the year, we expect demand to improve, driven by the upcoming festive season, resumption of government infrastructure spends and normalisation of construction, industrial and mining activities post heavy rainy season," Singhania added.

JK Tyre said its subsidiaries, Cavendish Industries and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company.