Consolidated net profit fell 73% year-on-year to ₹44 crore, compared with ₹163.4 crore in the corresponding quarter last year. Revenue, however, edged up 2% to ₹3,946 crore from ₹3,869 crore a year ago.
At the operating level, EBITDA declined 35.8% year-on-year to ₹258.1 crore, compared with ₹402 crore in the year-ago period. The EBITDA margin consequently contracted to 6.54% from 10.39%.
Shares of JK Tyre & Industries fell over 5% after the earnings announcement, touching an intraday low of ₹384.15 on the NSE.
West Asia crisis hits raw material costs
Commenting on the performance, Raghupati Singhania, Chairman and Managing Director of JK Tyre, said the company continued to see steady demand momentum across segments, with a focus on customer centricity, product excellence and disciplined execution.
“During the quarter domestic volumes grew by 25% on year-on-year basis,” Singhania said, with replacement volumes rising 12% and original equipment (OE) volumes increasing 42%.
He added that higher-value-added products continued to make an increasing contribution to the business.However, the company faced pressure from rising raw material costs amid the continuing West Asia crisis.
“The continuing West Asia crisis led to a sharp increase in raw material prices which impacted our gross and operating margins,” Singhania said.
He noted that around 70% of tyre industry raw materials are petro-based, leaving the sector particularly vulnerable to movements in oil prices.
Despite the sharp pressure on profitability, JK Tyre’s domestic volume growth remained strong during the quarter, particularly in the OE segment. The company said the performance was supported by demand momentum across markets and increasing contribution from higher-value-added products.
