JK Tyre Says Higher Commodity Prices Will Not Impact Second Quarter
JK Tyre & Industries Ltd. said its second quarter earnings will not be significantly impacted by higher commodity prices.
The rise in oil prices will be offset by an increase in demand, Chief Financial Officer Ashok Kumar Kinra told BloombergQuint. “We should be in a position to pass on the cost increase.”
Tyre makers use a mix of natural and synthetic rubber—a derivative of crude oil.
The company’s revenue rose 35 percent year-on-year to Rs 2,439.5 crore in the quarter ended June. This, coupled with a drop a raw material prices, led to an improved operational performance.
Key Earnings Highlights
- Net profit stood at Rs 64.1 crore against a net loss of Rs 117.2 crore a year ago.
- Earnings before interest, tax, depreciation and amortisation came at Rs 325.5 crore compared with an Ebitda loss of Rs 1 crore in the year-ago period.
Shares of the tyre maker rose as much as 1.87 percent in early trade to Rs 125.30 apiece.