New Delhi: JK Tyre and Industries Ltd stock fell as much as 5.5% in intraday trade on Friday after the company on Thursday announced that its consolidated net profit for the March quarter fell nearly 79% year-on-year to Rs 33.66 crore due to high raw material prices.
JK Tyre said the cost of raw materials consumed was higher at Rs 1,436.82 crore during the fourth quarter (Q4) compared with Rs 1,420.08 crore a year ago. Total expenses were also higher at Rs 2,665.91 crore compared with Rs 2,146.54 crore.
However, revenue from operations during the period grew 18% to Rs 2,705.89 crore as against Rs 2,283.97 crore during the quarter ended March 2018.
For the whole year, JK Tyre reported a net profit of Rs 170.57 crore, up more than 2.5 times against Rs 63.32 crore in 2017-18. Revenue also grew to Rs 10,369.94 crore compared with Rs 8,397.29 crore in the previous year.
“FY19 was indeed a landmark year for the company. JK Tyre’s sales crossed the Rs 10,000 crore mark, while the company achieved a robust growth of 24% over the previous year, surpassing the industry growth. Despite Q4 profitability being impacted due to high raw material prices, the operating margins for the year as a whole increased by 35%,” said Raghupati Singhania, chairman and managing director of JK Tyre.
JK Tyre also said its volumes grew 20% in FY19 despite a slowdown in the automotive sector in the second half of the year.
The company said its board has recommended a 75% dividend of Rs 1.5 per equity share for the year ended March.
Shares of JK Tyre were trading at Rs 77.30 apiece, down 2.5%, at 10:16am on BSE.
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