JK Tyre & Industries Ltd today reported 90.12 per cent decline in consolidated net profit at Rs 10.34 crore for the second quarter ended September 30, hit by higher expenses specially that of raw material prices.
The company had posted a consolidated net profit of Rs 104.65 crore in the same period last fiscal, JK Tyre & Industries said in a BSE filing.
Revenue from operations during the quarter under review stood at Rs 2,058.28 crore. It was at Rs 2,069.91 crore in the corresponding quarter last fiscal. The figures are not comparable due to GST implementation from July, it said.
Commenting on the performance, JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said, "...considerably higher raw material prices as compared to the corresponding quarter have impacted profits."
Total expenses during the quarter were at Rs 2,055.32 crore as compared to Rs 1,887.84 crore in the year-ago period. Cost of materials consumed was at Rs 1,168.51 crore as against Rs 1,039.22 crore in the second quarter last fiscal.
Singhania, however, said the results were an indication of the market that is showing signs of picking pace.
Good performance by JK Tornel in Mexico added to the companys overall financial performance.
The government's focus on roads and infrastructure, supported by affordable consumer financing, is likely to revive commercial vehicle sales which shall have a positive impact on commercial tyre sale in the coming period, it added.
The imposition of anti-dumping duty on cheap Chinese truck/bus radials, announced towards the end of the quarter, is a welcome step. This will help the company to muster higher volumes, he said.
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