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Impacted by a voluntary retirement scheme (VRS) burden of Rs 37.6 crore and forex loss of Rs 23.5 crore, JK Tyre has reported a 10% drop in its consolidated net profit for the September quarter. Net profit declined to Rs 101.4 crore. Revenue, however, grew over 5% to Rs 2,070 crore mainly due to an inclusion of the sales from the Birla Tyres, a firm it acquired recently.
JK Tyre said it had offered VRS to 1,000 staff employed across three units of Birla Tyres.
These three units still have 4,500 employees, a number considered to be high.
The company also saw an impact of Rs 23.5 crore due to a depreciation of Mexican currency vis-a-vis the dollar and the rupee. It owns and operates tyre plants in Mexico. The company also incurred a loss of Rs 3.36 crore on sale of certain assets.
