Q2 Result : JK Tyre Net Profit Down By 41 Per Cent

Published On 31-Oct-2021By TyreDekho Team

The company had posted a net profit of 110 crores last year in the same period.

JK Tyre Net Profit Down By 41 Per Cent

Homegrown tyremaker JK tyre has reported a 41 per cent loss in the net profit in the second quarter that ended last month. The company reported a net profit fall of Rs. 64.96 crore citing the rising input costs. A couple of days back, CEAT too reported a dip in their net profit citing the same reason. 

Surprisingly, JK Tyre in the same period of last financial year posted a net profit of 109.68 crores. However, the revenue generated from the operations during this period increased to 30 per cent at Rs. 2,986.66 crore as compared to Rs 2,274.84 crore in the previous year same period.

Chairman and MD, JK Tyre, Raghupati Singhania, said that there is healthy growth in the sales registered in the replacement market, while the institutional sales showed a quantity jump during the last quarter.

Q2 Result: CEAT Registers Slump Of 77 Percent In Its Net Profit

On the other hand, the continued demand rose the exports by 35 per cent. He further stated that the rising input cost was the sole reason behind the affected operating margins, which could be lessened, right to some extent through increased volumes and selective price enhancements.

On the positive side, JK Tyre’s subsidiary Cavendish Industries LTD has shown revenue growth in the last quarter, while the subsidiary in Mexico, JK Tornel, has also contributed well to the significant growth of revenue and profitability. The credit of economic recovery partly goes to the excellent efforts made towards vaccinating the population of the country, which will prove to be advantageous in the coming months.

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