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JK Tyre’s Q1 profit plunges on subdued demand

JK Tyre’s Q1 profit plunges on subdued demand

JK Tyre’s consolidated net profit plunged 75% in the first quarter of FY19-20 due to ‘overall slow-down in automotive sector.’

The company announced  a consolidated net profit of Rs16.12 crore in the April-June 19 period compared to RsRs64.24 crore in the same period of last fiscal. However, revenues grew by 6% to Rs2581 crore in Q1FY19-20 against Rs2446 in inQ1FY18-19.

 

Commenting on the results, Dr. Raghupati Singhania, Chairman and Managing Director of the Company said, “it was a difficult Quarter for  Auto Industry, which  is passing through  challenging times.  The Quarter ending June 2019 witnessed considerable de-growth in Auto sales. Most of the OEMs have reported heavy reduction in their Sales volumes.  Despite this, the Company has recorded 18% growth in the overall replacement market which could partly off-set lower sales in the OEM segment and exports growth of over 50% over the corresponding period with an overall volume growth of 10%”.

Dr Singhania further added, “that profitability during the Qtr has been impacted due to overall slow-down in automotive sector”. Despite strong headwinds, the company continued its relentless efforts to achieve higher sales volumes in 2/3 Wheeler segment.

The Company expects the economy to improve  from the second half of the current year, when the volumes are expected to  pick-up  resulting into improvement in  profitability.

 

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