JK Tyre Q3 results: Profit dips 77% to Rs 51.52 crore on weak demand

JK Tyre reported a smaller profit for the second straight quarter on Tuesday, hurt by weak demand from truck and bus customers.

 

The tyre maker's profit sank 77% to Rs 51.52 crore ($5.92 million) in the third quarter from Rs 221 crore a year before.

 

Its revenue dropped marginally to Rs 3,674 crore.

 

Expenses rose 7%, led by a 6% climb in raw material costs.

 

Indian tyre makers are suffering from weak demand for new vehicles in the country this fiscal year and those more reliant on sales to truck and bus customers have been hit harder.

 

 

JK Tyre gets at least half of its revenue from such customers, mostly in its home market of India, that forms an even higher 80%-90% of revenue.

 

Commercial vehicle sales rose 1.2% during the quarter, but trailed overall auto sales growth of 3.1%, industry data showed.