JK Tyre & Industries Thursday reported a 78.81 per cent decline in consolidated net profit at Rs 33.66 crore for the quarter ended March 2019 due to high raw material costs and expenses.
The company had posted a consolidated net profit of Rs 158.87 crore in the year-ago period, JK Tyre said in a regulatory filing.
Consolidated revenue from operations for the quarter under review stood at Rs 2,705.89 crore as against Rs 2,283.97 crore in the same period of 2017-18.
The company said the cost of raw materials consumed was higher at Rs 1,436.82 crore as compared to Rs 1,420.08 crore.
Total expenses were also higher at Rs 2,665.91 crore as compared to Rs 2,146.54 crore.
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For the fiscal ended March 31, the company said its net profit jumped to Rs 170.57 crore from Rs 63.32 crore in the previous year.
Consolidated revenue for 2018-19 was at Rs 10,369.94 crore, up from Rs 8,397.29 crore in 2017-18.
Commenting on the performance, JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said 2018-19 was a landmark year for the company.
"JK Tyre sales crossed the Rs 10,000 crore-mark while achieving a robust growth of 24 per cent over the previous year, surpassing the industry growth," he said.
Despite fourth quarter profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35 per cent, he added.
JK Tyre said its volumes grew 20 per cent despite a slow down in the automotive sector in the second half of the year.
The company said its board has recommended a 75 per cent dividend of Rs 1.5 per equity share for the year ended March 31, 2019.
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