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JK Tyre second quarter profit falls despite highest-ever quarterly revenue

Subsidiaries Cavendish and JK Tornel also contributed to the growth in the September quarter.

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By CNBCTV18.com Nov 2, 2022 12:23:18 PM IST (Published)

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JK Tyre second quarter profit falls despite highest-ever quarterly revenue

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JK Tyre and Industries Ltd. shares jumped 2.5 percent in intraday trade on Wednesday after the company reported its highest-ever quarterly revenue during the September quarter.
The company’s consolidated revenue jumped 26 percent year-on-year to Rs 3,764 crore compared to Rs 2,998 crore a year ago.
However, a jump in revenue could not aid profits due to higher expenses. The company’s net profit was Rs 51.31 crore for the quarter, down nearly 23 percent as against Rs 66.56 crore for the year-ago quarter.
EBITDA also inched up just 2 percent year-on-year to Rs 305 crore in the September quarter.
Total expenses for JK Tyre rose 26.6 percent year-on-year to Rs 3,668 crore, with input costs up 20.7 percent due to rising oil prices.
The company reported earnings per share (EPS) of Rs 2.08 as compared to Rs 2.70 for the year-ago quarter.
The company's management cited robust growth in domestic volumes across commercial and passenger tyre segments. Among geographies, the India business grew in excess of 20 percent while the Mexican business saw growth of 33 percent compared to last year.
Subsidiaries Cavendish and JK Tornel also contributed to the growth in the September quarter.
Shares of JK Tyre are off the day's high, currently trading 0.5 percent higher at Rs 169.5.

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