JK Tyre’s Net Profit Plunges by 10% in Third Quarter of 2016

Delhi-based India’s leading tyre manufacturer JK Tyre has registered a 10 percent plunge in its consolidated net profit in the September 2016 quarter. The major ground for this drop has been the Voluntary Retirement Scheme (VRS) burden worth INR 37.6 crore alongside forex loss of INR 23.5 crore.

Here tyre firm’s net profit declined to INR 101.4 crore, whilst on the other hand, its revenue recorded a growth of over 5 percent to INR 2,070 crore largely due to the addition of Birla Tyres sales. JK Tyre of late acquired Birla Tyres business at INR 2200 crore.

JK Tyre had said in a statement that it had offered VRS to 1,000 staff members, which were a part of Birla Tyres across its three units. These three units at present have employee strength of 4,500 employees, which is believed to be higher.

The company also saw an impact of Rs 23.5 crore due to the depreciation of Mexican currency vis a vis the dollar and the rupee.

Besides this, another cause for the debacle has been the impact of INR 23.4 crore suffered due to the deterioration of Mexican currency in comparison with the USD and Indian Rupee.

JK Tyre owns and carries out operations of tyre manufacturing plants in Mexico and has sustained a loss of INR 3.36 crore on sale of some assets.

About the company –

JK Tyre & Industries Ltd popularly called as JK Tyre is the market leader in India in the Truck/Bus Radial Tyre Segment. Founded in 1874, JK Tyre has a capacity of production of over 20 million tyres per annum.

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics of two wheelers thanks to my father as he is a hydraulic mechanic and would take me along with him on his repair sessions. Eventually I became familiar with the tools and basic technical concepts of two wheelers.Super sport and sport tourers are more of my liking and the sparks to these flames were ignited the first time I experienced the maddening power of a Yamaha YZF R1. I was just 14 years old at the time and got to ride as a pillion with an older acquaintance. This one short ride influenced my every decision in terms of the bikes I want to own. As of today I’m 26 years old and a proud owner of a Yamaha Fz15 version 2.0 and a Kawasaki Ninja 650 2014 model having clocked a decent 30k Kms only while touring, waiting to clock 1000s more as riding makes me feel whole again after enduring the dismal routines of life. Read more