JK Tyre & Industries (JK Tyre) on Saturday reported a consolidated net profit of ₹212 crore for the first quarter ended June 30, up 33.33 per cent year-on-year (YoY) as compared with ₹159 crore in the corresponding period last year.
However, its consolidated revenue declined by two per cent YoY to ₹3,655 crore in the quarter in review as against ₹3,726 crore in the April-June quarter last year.
“We continue to deliver profitable growth with year-on-year increase in operating margins. Our strategic thrust on premiumisation and pricing have helped us to manage the raw material cost pressures. Although overall revenues were marginally lower due to decline in the orignal equipment manufacturer (OEM) segment, this was largely offset by increased exports,” Raghupati Singhania, Chairman and Managing Director, said.
During the quarter, exports recorded healthy double-digit growth, despite geo-political disruptions and rising ocean freights, he said.
“Looking ahead, we expect export demand to pick up. JK Tyre’s subsidiaries, Cavendish Industries and JK Tornel, Mexico, continued to make significant contributions to the overall revenues and profitability of the company,” Singhania said.
He said the company remains optimistic about the outlook for tyre demand, driven by ongoing policy reforms including continued focus on infrastructure development.
Moreover, upcoming festive season and favourable monsoon condition augur well for the industry, he said adding that JK Tyre was committed to continue its focus on digitalisation, R&D, innovation, sustainability, customer-centricity, and technology-driven manufacturing.
Shares of JK Tyre had closed at ₹431.10 apiece on the BSE on Friday, down 1.27 per cent from the previous close.