Latest news with #JKTyreandIndustries
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Business Standard
08-08-2025
- Automotive
- Business Standard
JK Tyre Q1 net profit drops 21%; eyes margin lift on cost stability
JK Tyre and Industries reported a 21 per cent year-on-year (Y-o-Y) decline in its consolidated net profit to ₹165 crore for the first quarter of the financial year 2026 (Q1FY26), while revenue from operations rose 6 per cent to ₹3,868 crore. Sequentially, net profit grew 70 per cent, with revenue from operations increasing 2.9 per cent. Raghupati Singhania, Chairman and Managing Director, said: 'Despite a challenging and uncertain macroeconomic environment, exports of passenger car tyres witnessed strong traction both on a quarter-on-quarter and year-on-year basis, signifying pull for our products and enhanced brand perception in global markets.' During the earnings call, Anshuman Singhania, Managing Director, said: 'Raw material costs have come down by about 2.5 per cent compared to the previous quarter and are expected to remain stable through the rest of the year. We don't anticipate any major volatility on that front. As we continue to optimise our product mix—particularly with the premiumisation of our passenger car segment, where 16-inch and above now account for 25 per cent of our portfolio—it is positively impacting our bottom line. With additional capacities coming on stream, we're well-positioned to meet growing market demand.' Sanjeev Aggarwal, Chief Financial Officer, added: 'The worst is behind us in terms of raw material prices. If they remain stable as expected, we foresee margin improvement going forward, driven by a stronger product mix and the benefits of operating leverage.' The company said its subsidiaries—Cavendish (India) and Tornel (Mexico)—contributed significantly to overall financial performance. JK Tyre also anticipates a pick-up in tyre demand in the second half of the fiscal year, backed by economic momentum and a continued infrastructure push. The results were announced during market hours. The stock rose 1.05 per cent to close at ₹327.55 apiece on the BSE.
Business Standard
20-05-2025
- Automotive
- Business Standard
JK Tyre Q4FY25 profit down 42.6% to Rs 97 crore, revenue up 1.63%
JK Tyre and Industries on Tuesday reported a 42.6 per cent year-on-year (Y-o-Y) decline in its consolidated net profit at Rs 97.04 crore for the fourth quarter of the financial year 2025 (Q4FY25), while revenue from operations grew by 1.63 per cent to Rs 3,758.6 crore. The decline in net profit was attributed to rising raw material costs, particularly for natural rubber. Sequentially, revenue from operations grew by 2.31 per cent, while profit after tax (PAT) increased by 88.3 per cent. Raghupati Singhania, chairman and managing director (CMD), stated: 'Despite a challenging and uncertain global economic landscape in the domestic market, JK Tyre recorded a healthy uptick in both replacement and OEM segments compared to the same quarter last year.' During the earnings call, Anshuman Singhania, managing director of JK Tyre and Industries, said: 'The decline in performance was primarily due to rising raw material prices. Last year alone, there was an approximately 10 per cent increase in raw material costs, particularly affecting truck radial tyres. Unfortunately, this cost inflation could not be fully passed on to customers, as OEM demand remained subdued and they were not keen on picking up large volumes.' Additionally, global market volatility added to the uncertainty, particularly affecting exports. In Mexico, operations were impacted by tariff uncertainties related to exports to the US. Currency depreciation also played a role — the Mexican peso weakened nearly 8 per cent Y-o-Y against the Indian rupee, which adversely affected the consolidated topline figures. Going forward, the company expects margins to improve, provided input costs stabilise. The company's push towards premiumisation has yielded positive results, with premium products such as Levitas Ultra, Smart Tyre, Ranger Series and Puncture Guard tyres in the passenger vehicle segment, along with the XF, XM and XD series in the commercial segment, witnessing increasing market preference.
