JK Tyre Q2 results: Net profit falls 44% to Rs 135 cr on weak sales

JK Tyre & Industries reported its first quarterly profit fall in two years on Tuesday, hurt by weak tyre sales to car, bus and truck makers.

The tyre maker's consolidated net profit for the July-September quarter fell 44 per cent year-on-year to Rs 135 crore ($16.1 million).

Its second-quarter revenue declined 7 per cent to Rs 3,622 crore, after dropping for the first time in four years in the April-June period.  KEY CONTEXT

Domestic sales of buses and trucks fell 12 per cent in the second quarter, while car makers' sales declined for the first time in more than two years. This hurt JK Tyre's earnings as it garners over 80 per cent its revenue from such customers.

 

Indian tyre makers are also grappling with higher rubber costs due to global supply shortages, which pushed up domestic rubber prices by 20 per cent during the quarter.

Larger rival CEAT and Goodyear India also reported a decline in quarterly profit. MRF will report its results later this week.