JK Tyre's quarterly profit drops for first time in two years in Q2FY25

On November 5, JK Tyre's shares on BSE closed 0.33% lower at Rs 389.7 apiece.

Raghupati Singhania, Chairman and Managing Director (CMD), said: “JK Tyre, maintained it’s volumes & presence in the Passenger Car segment despite lower demand in the category. Commercial vehicle segment also witnessed slackening attributable to general election and unusual heavy rains affecting revenue growth during the quarter. Improved export performance helped partly offset the domestic slowdown."

"Operating profit margins were affected by a sharp rise in natural rubber prices, driven by adverse weather conditions and supply chain disruptions. However, the impact was partially mitigated through judicious price increase, product premiumisation and strategic inventory built-up. As we move into the second half of the year, we expect demand to improve, driven by the upcoming festive season, resumption of government infrastructure spends and normalisation of construction, industrial and mining activities post heavy rainy season," said the company in a stock exchange filing.

Indian tyre makers are also grappling with higher rubber costs due to global supply shortages, which pushed up domestic rubber prices by 20% during the quarter.

Larger rival CEAT and Goodyear India also reported a decline in quarterly profit. MRF will report its results later this week.

With inputs from Reuters