JK Tyre reports net drop in Sept quarter profit by 23% to Rs 50 crore

JK Tyre & Industries on Tuesday said its consolidated net profit declined 23 per cent to Rs 50 crore for the second quarter ended September 30, 2022.

The tyre maker had reported a net profit of Rs 65 crore in the July-September period of last fiscal.

Total income, however, increased to Rs 3,764 crore in the September quarter as against Rs 2,998 crore in the year-ago period.

JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said the company's operating margins have somewhat improved due to better market conditions.

"We continue to achieve robust growth in domestic volumes across products, i.e., commercial and passenger tyre segments. During the quarter, OEM offtake improved post-easing in semiconductor supplies, festive season and good traction in economic activities," he noted.

He further said: "We believe domestic demand shall continue to grow on the strength of improved economic activities, sustained focus of government on infrastructural spends and making India an integral part of global value chain."

Furthermore, exports continue to contribute significantly to the company's revenue growth, despite an increasingly challenging geopolitical and economic situation, Singhania said.

Cavendish Industries and JK Tornel, Mexico -- subsidiaries of the company -- have contributed well to the overall growth of the company, he added.

The company's shares on Tuesday ended 3.38 per cent at Rs 168.65 apiece on the BSE.