JK Tyre Q4 Results: Profit Declines, Margin Contracts As Forex Fluctuations Bite
The board has recommended a dividend of Rs 3 per equity share for the financial year ended March 2025.
JK Tyre & Industries Ltd. reported a decline in standalone net profit in the fourth quarter of financial year 2024-25, impacted by higher expenses and adverse forex fluctuation.
Net profit declined 34% to Rs 96.5 crore in the January-March quarter, compared to Rs 146 crore in the corresponding period last year, according to financial results released on Tuesday. The company said it had incurred an exceptional item outgo of Rs 5 crore.
Revenue from operations saw a modest increase of 2.2%, reaching Rs 2,674 crore compared to Rs 2,616 crore in the previous year.
For the whole year, profit decreased 35% to Rs 385 crore from Rs 591 crore.
The company experienced a significant decline in operational profitability, with Ebitda down 21% to Rs 263 crore from Rs 333 crore, leading to a narrower margin of 9.8% compared to 12.7% in the same period last year.
On a consolidated basis, profit fell 42.5% in the March quarter to Rs 98.66 crore. India business revenue was up at Rs 3,406 crore as compared to Rs 3,215 crore in the year-ago period.
However, Mexico revenue was down at Rs 449.6 crore as against Rs 611.77 crore in the corresponding period a year ago.
The board has recommended a dividend of Rs 3 per equity share for the financial year ended March 2025.
"Despite a challenging and uncertain global economic landscape, JK Tyre delivered a promising performance in FY2025, gaining significant momentum in the fourth quarter," JK Tyre & Industries Chairperson Raghupati Singhania said.
In the domestic market, he said the company recorded a healthy uptick in both replacement and OEM segments compared to the same quarter last year.
"This growth reflects not only the company's robust brand equity and deep market reach but also the positive macroeconomic environment and growing automotive demand," Singhania said.
On the outlook, he said: "We are entering FY2026 with renewed confidence, backed by a robust demand outlook across all segments."
The government's accelerated focus on infrastructure, a strong pipeline of new vehicle launches, potential easing of interest rates, and an expected normal monsoon position the company well for sustained growth, he noted.
(With PTI inputs)
