JK Tyres takes 74% drop in Q3

Despite the fact that the Indian Auto market is going through its highest swing, the Indian tyre manufacturer, JK tyres & Industries took a low dip in its net profit by 74 per cent in the third quarter of this financial year. The company went through the falling net profit because of the increased input cost and a total drop of Rs 9.14 crore was observed leading to a 74.93 per cent fall from that of last year figures.

Last year the third quarter led to profits of Rs 36.46 crore with net sales being Rs 1,174.4 crore which was an increase of 47 per cent. Addressing the 3Q results, Mr. Raghupati Singhania who is the Vice-Chairman & Managing Director in JK Tyre & Industries said that the quarter was very tough for the company because of the high competition and increased input cost. He said that the price of natural rubber has gone up by 100 per cent and other raw material cost has also taken a hike which has made it really difficult for the company to mark good output in the third quarter.

He also commented that the sales of the quarter has been good enough and the tyre prices have also gone up but still it was too difficult to maintain the margins. He admitted to the fact that the tyre market is growing well in India owing to high demand and company has to expand the production level in order to meet this growing demand.

The truck and bus radial production by the company has also been increased to 14 lakh tyres per annum. The production at Mysore and new Chennai plant has been increased to catch up with the demand.

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