JK Tyre net sales up in Q2 FY18
JK Tyre & Industries Ltd (JKTIL) has registered net sales of Rs 20,580 million for the second quarter of 2017-18, an increase of Seven per cent over the corresponding period last fiscal. On a standalone basis, JK Tyre recorded net sales of Rs 16,040 million.
“The results were an indication of the market that is showing signs of picking pace. JK Tyre has registered 11 % growth in sales over the corresponding Quarter, driving higher volumes across segments, including truck/bus tyres, where we maintained our leadership. However, considerably higher raw material prices as compared to the corresponding quarter have impacted profits,” said Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd.
Owing to higher expenses due to increase in raw material prices, the company reported 90.12% decline in consolidated net profit at Rs 103.4 million for the second quarter ended September 30, 2017.
According to Singhania, the imposition of anti-dumping duty on cheap Chinese Truck/Bus Radials announced towards the end of the quarter, is a welcome step. This will help the company to muster higher volumes.
JK Tyre’s growth was driven by better demand in the passenger segment both for four as well as two-wheelers. Good performance by JK Tornel in Mexico has added to the company’s overall financial performance. The Government’s focus on roads and infrastructure, supported by affordable consumer financing, is likely to revive commercial vehicle sales which shall have a positive impact on commercial tyre sale in the coming period, JK Tyre said in a statement.