JK Tyre & Industries fell 4.44% to Rs 74.30 after the company reported weak Q3 numbers after market hours yesterday.
The stock fell as much as 5.91% at the day's low at Rs 73.15 in morning trade.
The tyre maker's consolidated net profit declined 59% to Rs 10.95 crore in Q3 December 2019 from Rs 26.68 crore in Q3 December 2018. Profit before tax (PBT) stood at Rs 23.31 crore in Q3 December 2019, down by 48.2% from Rs 45 crore reported in Q3 December 2018.
Net sales fell 19.4% to Rs 2199.80 crore in Q3 December 2019 from Rs 2730.77 crore in Q3 December 2018. While India business revenues fell 21.32% to Rs 1917.10 crore, Mexican earnings contracted by 4.65% to Rs 312.94 crore in Q3 December 2019 over Q3 December 2018.
Total expenditures of the company stood at Rs 1955.64 crore in Q3 December 2019, down by 21.3% as compared to Rs 2486.07 crore in Q3 December 2018, primarily on account of reduction in raw materials costs (down 25.6%) and finished goods purchases (down 88%).
Dr. Raghupati Singhania, chairman & managing director, JK Tyre & Industries, said, It was indeed a challenging quarter for the automotive industry. Passenger and commercial vehicles have witnessed a drastic cut in production. JK Tyre has dealt with this difficult situation by focusing on replacement sales and exports. As a result, the company on a standalone basis recorded an increase of 13% in sales compared to the preceding quarter. Exports are up by nearly 40 % during the 9-month period of the current financial year. This twin strategy augurs well for the future.
The company's subsidiaries namely, JK Tomel, Mexico and Cavendish Industries continue to perform well, the tyre manufacturer said in a statement.
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JK Tyre and Industries manufactures a wide range of automobile tires, tubes and flaps. The company also operates a chain of tire outlets across the country which sell the company's tires in addition to providing a range of automotive services, including wheel alignment and tire changing.
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