JK Tyre & Industries today reported a consolidated net loss of Rs 117.21 crore for the first quarter ended June 30, hit by an increase in raw material prices in the domestic market.
The company had posted a net profit of Rs 100.47 crore for the same period of the previous fiscal.
Total income declined to Rs 1,942.86 during the first quarter, as compared to Rs 1,957.76 crore in the same period of previous fiscal, JK Tyre & Industries said in a regulatory filing.
On a standalone basis, the company reported a net loss of Rs 65.86 crore for the first quarter. It had posted a net profit of Rs 100.85 crore in the same period of the previous fiscal.
"The raw material costs increased by about 30 per cent over the corresponding quarter. Such steep increase in prices of raw materials without commensurate increase in selling prices dented margins," JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said.
Moreover, unabated imports of cheap Chinese radial tyres impacted both volumes as well as prices of Truck/Bus radials, he added.
Besides, commercial vehicle manufacturers cut production to destock inventories and transition to new emission norms during the period under review, Singhania said.
Singhania said that in the replacement market, dealers were reluctant to take tyres before GST introduction.
"JK Tyre being a market leader in Truck/Bus radial segment in both OEM and replacement segment had to bear the brunt," he added.
Singhania said that with the smoothening out of the GST roll out, the situation is likely to be somewhat better in the coming months.
Besides, expected imposition of anti dumping duties on cheap Chinese imports will be a welcome step and should improve the commercial tyre market, he added.
JK Tyre shares today ended 3.13 per cent up at Rs 151.80 on the BSE.
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