JK Tyre & Industries rose 5.55% to Rs 145.45 at 14:16 IST on BSE after consolidated net profit fell 13.54% to Rs 100.15 crore on 5.25% growth in total income to Rs 2077.24 crore in Q2 September 2016 over Q2 September 2015.
The result was announced after market hours yesterday, 9 November 2016.Meanwhile, the S&P BSE Sensex was up 402.82 points or 1.48% at 27,655.35.
On BSE, so far 4.14 lakh shares were traded in the counter as against average daily volume of 5.75 lakh shares in the past one quarter. The stock hit a high of Rs 148.85 and a low of Rs 142 so far during the day. The stock had hit a 52-week high of Rs 161.50 on 6 October 2016. The stock had hit a 52-week low of Rs 74.05 on 29 February 2016.
The company's bottom line during Q2 September 2016 was weighed down by higher finance costs and higher exceptional expense vis-vis corresponding previous quarter. Finance costs jumped 80.8% at Rs 110.69 crore in Q2 September 2016 over Q2 September 2015. There was exceptional expense of Rs 64.44 crore in Q2 September 2016 compared with exceptional expense of Rs 30.87 crore in Q2 September 2015. Exceptional expense during Q2 September 2016 include unfavourable foreign exchange fluctuation mainly due to translation loss owing to unprecedented depreciation of Mexican Peso vis-vis US dollar/rupee and net loss on sale of certain assets.
Commenting on the company's performance, Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries said the company continues to surge ahead in the Indian market with higher sales in volume terms. The company continues to maintain its leadership in truck/bus radials and has recorded higher operating profit for Q2 September 2016 on a consolidated basis, Singhania said. He added that import of cheaper Chinese tyres continues unabatedly in the truck/bus radial segment which is causing serious injury to the Indian tyre industry. Tyre industry has taken up this matter with the Government of India more than 18 months back, with a request for imposition of anti dumping duty on these cheap imports, he said. It has still to see an outcome, Singhania added.
JK Tyre & Industries is a leading four-wheeler tyre manufacturer in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the automobile industry.
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