TNI || New Delhi || 29th Oct 2021
JK Tyre, the Indian tyre maker, has reported a net profit decline of 41% for the second quarter ending September 30.
The figure stands at INR 63.96 crore due to the increase in the input cost. It is well to be noted that the company posted a net profit of INR 109.68 crore in the corresponding period of the last year.
That said, the revenues from operations rose to 31%, amounting to INR 2986.66 crore in a similar period this year.
Chairman and Managing Director of JK Tyre Raghupati Singhania said that sales in the replacement market keyed in healthy growth and the institutional sales recorded a leap during the quarter.
The company’s continued thrust made way for a 35% rise in exports. According to him, the input cost has impacted margins to a significant extent. However, that can be partially mitigated through increased volumes and select price enhancements.
JK Tyre subsidiary, Cavendish Industries Ltd. has consistently contributed to revenue growth. The company’s another subsidiary in Mexico by the name of JK Tornel has also done well with decent growth in both, revenues and profitability