Challenges and Strategies: JK Tyre & Industries Faces Financial Slowdown

JK Tyre & Industries reported a 42% decline in profit for the September quarter, attributed to increased natural rubber prices and disrupted supply chains. Despite the downturn, they maintain a strong presence in the electric vehicle bus market and expect demand to improve in the year's second half.

JK Tyre & Industries faced a significant financial setback, announcing a 42% decline in its consolidated Profit After Tax to Rs 144.25 crore for the September quarter. The company had reported a higher PAT of Rs 250.25 crore in the previous year, according to official regulatory filings.

The firm's total income fell by 6.7% to Rs 3,643.15 crore in the current fiscal year's second quarter, down from Rs 3,905.32 crore in the same period last year. This drop is largely attributed to a surge in natural rubber prices due to unfavorable weather and supply chain issues.

Chairman and Managing Director Raghupati Singhania noted that, despite challenges, JK Tyre maintained strong market share across OEM and replacement markets in the electric vehicle bus sector. Improved export performance partially mitigated domestic market slowdowns, with future growth anticipated from festive demand and resumed infrastructure investments.

(With inputs from agencies.)