Mumbai, May 20: Tyre manufacturer JK Tyre & Industries on Friday reported a 80.39 per cent decline in consolidated net profit for the quarter ended March 31 at Rs 38.22 crore on the back of higher input cost. The company had reported a PAT of Rs 194.96 crore in the corresponding period last year. Its revenues from operations for the quarter under review stood at Rs 3377.83 crore. As against Rs 2927.28 crore registering a growth of 15.39 per cent. The company said in a statement issued here. For the whole year, the tyre maker’s PAT stood at Rs 201.24 crore. As against Rs 330.93 crore last fiscal, registering a decline of 39.18 per cent. Its revenues from operations. However, increased to Rs 11982.96 crore from Rs 9102.2 crore in FY2021.
Commenting on the results, Dr Raghupati Singhania, Chairman and Managing Director said. That JK Tyre achieved the highest ever revenue of Rs.12,000 crore in FY2022. “The extraordinary input cost increase in FY2022 has impacted our margins. Despite all round cost reduction and efficiency improvement measures. As well as price increases taken from time to time in all tyre categories”. He said. Singhania further said that the exports contributed significantly to the top-line and were higher by about 60 per cent. As compared to last year. He noted that there is a good demand pick-up post unlocking of the COVID-19 restrictions. Resulting in higher volumes in commercial vehicle and passenger car tyre segments, he said. “We hope that the inflationary pressures will taper down post resolution of the geopolitical tensions and supply chain disruptions”. Singhania added.
The company further said that its subsidiaries – Cavendish Industries and JK Tornel, Mexico have made significant contributions to the revenues. “Both the entities have attained all time high sales for FY2022. We believe this trend should continue in the future as well” he said. On the outlook of the tyre industry, Singhania said. “We are optimistic about the outlook of the tyre industry. As we see improved infrastructural activities, higher automotive demand and better external environment. The company has undertaken an expansion of its PCR capacity at a cost of Rs 530 crore. The additional volumes are expected to be available by the end of 2023 and will enhance sales and profitability.”
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