JK Tyre & Industries Ltd today posted a 50 per cent decline in net profit for the fourth quarter ended March at Rs 13 crore.
The company had registered net profit of Rs 26 crore during the corresponding period the previous year. This was despite a rise in net sales by 29 per cent to Rs 1,347 crore compared to Rs 1,048 crore between January and March last year.
“Last quarter, our sales turnover increased by around 29 per cent due to rise in sales volume. The biggest challenge has come from heightened input costs, particularly of natural rubber, which has had an impact on profitability,” said Arun Bajoria, president and director.
The company's standalone net profit stood at Rs 61.2 crore, a decline of 62.5 per cent compared to Rs 163.5 crore reported last year. Net sales increased 30.8 per cent to Rs 4,810.9 crore from Rs 3677.7 crore. It is set to increase prices by 4-6 per cent across it range of products from June 1.
This would be the third time this year that the manufacturer would be raising prices of its products. Though the company maintained a strong growth of 30 per cent in sales turnover for the current fiscal, it sees no correction in rising prices of raw materials over the short-term.
