JK Tyre's net profit declines 10% to Rs 101.4 crore

Impacted by a voluntary retirement scheme (VRS) burden of Rs 37.6 crore and forex loss of Rs 23.5 crore, JK Tyre has reported a 10% drop in its consolidated net profit for the September quarter. 

Net profit declined to Rs 101.4 crore. Revenue, however, grew over five per cent to Rs 2,070 crore mainly due to inclusion of the sales from the Birla Tyres, a firm it acquired recently. JK Tyre said it had offered VRS to 1,000 staff employed across three units of Birla Tyres. 

These three units still have 4,500 employees,  a number considered to be high. 

The company also saw an impact of Rs 23.5 crore due to depreciation of Mexican currency vis a vis the dollar and the rupee. It owns and operates tyre plants in Mexico. The company also incurred a loss of Rs 3.36 crore on sale of certain assets.