& Industries Ltd on Monday reported a 20 per cent decline in consolidated net profit at Rs 35.13 crore in the first quarter ended June, impacted by higher expenses on raw materials. The company had posted a consolidated net profit of Rs 44.14 crore in the same quarter last fiscal, JK Tyre & Industries Ltd said in a regulatory filing.
Consolidated revenue from operations during the quarter under consideration stood at Rs 3,643.03 crore as compared to Rs 2,608.44 crore in the year-ago period, it added.
Total expenses in the first quarter were higher at Rs 3,557.97 crore from Rs 2,533.1 crore a year ago, with cost of materials consumed at Rs 2,616.58 crore, up from Rs 1,775 crore in the first quarter last fiscal, the company said.
Raw material and other input costs witnessed an on-going uptrend, thus impacting margins, JK Tyre said, adding, it has undertaken multiple price revisions though not to the full extent and would “pursue further opportunities”.
There has been a healthy pickup in demand both for passenger and commercial vehicle tyres, both in the replacement and original equipment markets, JK Tyre & Industries Chairman and MD Raghupati Singhania said.
He said, “We are quite optimistic on India’s growth story and demand outlook in automobile and tyre industry, despite global fears of slowdown, geo-political disturbances and supply chain constraints. We believe domestic consumption and healthy infrastructural spends will drive the growth in the near future.
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