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Due to high raw material prices, JK Tyre & Industries reported a decline of 22.33% for the third quarter that ended on 31st December, 2016. In a BSE filing the company said that this year it has posted a net profit of Rs 86.19 cr for the third quarter while it posted Rs 110.97 cr last year during the same corresponding period.
In the third quarter the cost of materials consumed was up by 26.36% compared to last year. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd has raised his concerns regarding the continuous rise in the process of natural rubber. He was of the view that due to the ever increasing prices of natural rubber the tyre industry is facing tough challenge ahead. However, talking about JK Tyre’s performance he said, the company has done well in all the segments and has been able to maintain its supremacy in truck/bus radials segment. He also said that the uncertainty regarding GST (Goods & Services Tax) and demonetisation too has affected the tyre market.
Raghupati Singhania also emphasised the fact that the budget has not addressed the inverted duty structure and the dumping of Chinese truck radials. He urged that government must take immediate action with regard to the anti-dumping duty and uncontrolled import of Chinese tyres. According to analysts, the import of cheap Chinese tyres has affected the Indian tyre makers profit a lot in the last 2 years.
