India’s leading tyre manufacturer, JK Tyre, has affirmed a 6% rise in sales while announcing its Q1 results of the current Financial Year. The tyre major has also confirmed the Net Sales of Rs. 2,581 crores (that includes a 6% rise in sales) along with an Operating Profit of Rs. 246 crores for the same period, on a consolidated basis.
Speaking on the matter, Dr Raghupati Singhania, Chairman and Managing Director, JK Tyre & Industries Ltd. stated that for the automotive industry Q1 was very difficult as the automotive industry is going through a tough phase. The quarter that ended in June 2019 has witnessed a noticeable decrease in automotive sales. As a result, the majority of OEMs have lately reported a heavy reduction in their sales.
Mr Singhania added that despite there being a fall in the automotive sales, the company was able to achieve a growth of 18% in the overall replacement market which helped them to balance the reduction in auto sales. He also highlighted that JK Tyre was able to attain 50% growth in exports as compared to the corresponding period, leading to an overall volume growth of 10%. The official also raised his concerns over the impact on profitability during the quarter, which was mainly due to slow-down in the auto-sector.
Despite challenging circumstances, JK Tyre was able to achieve higher sales in the 2-wheeler and 3-wheeler segments. The company is projecting an improvement in the economy from the second half of the current year with an expectation that the volumes would pick-up and result in improved profitability.
During the same period, JK Tyre’s subsidiary units — JK Tornel, Mexico and Cavendish Industries Ltd. also performed well.
Here’s the consolidated report of JK Tyre’s profit for Q1:
|Net Revenue||Rs. 2,581 Crores|
|EBITDA||Rs. 246 Crores|
|Profit Before Tax||Rs. 21 Crores|
|Profit After Tax||Rs. 16 Crores|
About JK Tyre
JK Tyre & Industries Ltd. is one of the leading tyre manufacturers in India. The brand was the only tyre manufacturer to be positioned in the list of Superbrand 2017. The company has its global footprints in more than 100 countries, spread across six continents. It has its 12 production facilities, that includes its 9 plants in India and 3 in Mexico, and collectively these plants can produce 32 million tyres per annum. In April 2016, the tyre major acquired Cavendish India Limited from another Indian tyre maker, Birla Tyres. This acquisition positioned JK Tyre as a key player in the 2-wheeler and 3-wheeler tyre segments as well.
JK Tyre currently leads in the Truck Bus Radial segment and has a wide range of tyres to cater to the commercial as well as passenger vehicles. Its product range starts from a 3kg 2-wheeler tyre and goes up to a 3.5-ton OTR tyre.
Across the country, JK Tyre has over 4,000 dealers and more than 250 dedicated outlets named Steel-Wheels. The tyre brand promotes racing talent through its track racing championship known as JK Tyre National Racing Championship and it also organizes two of the most popular automotive industry awards — Indian Car of the Year (ICOTY) and Indian Motorcycle of the Year (IMOTY).