JK Tyre & Industries on Friday reported 80 percent decline in consolidated net profit at Rs 38.22 crore for the fourth quarter ended March 31, 2022, impacted by higher expenses primarily due to rise in input costs.
The company had posted a net profit of Rs 194.96 crore for the same period of previous fiscal year, JK Tyre & Industries said in a regulatory filing.
Revenue from operations in the quarter stood at Rs 3,311.83 crore as against Rs 2,927.28 crore in the year-ago period, it added.
Total expenses were higher at Rs 3,280.78 crore as compared to Rs 2,673.58 crore in the corresponding period a year ago, with cost of materials consumed rising to Rs 2,219.63 crore from Rs 1,839.4 crore in the same quarter previous year.
For fiscal year ended March 31, 2022, consolidated net profit was at Rs 201.24 crore as compared to Rs 330.93 crore, down 39.2 per cent.
Revenue from operations was at Rs 11,982.96 crore as compared to Rs 9,102.2 crore in FY21. The company's board has recommended a dividend of Rs 1.50 per share having face value of Rs 2 each for 2021-22.
''The extraordinary input cost increase in FY-22 has impacted our margins despite all round cost reduction and efficiency improvement measures as well as price increases taken from time to time in all tyre categories,'' JK Tyre & Industries Chairman and Managing Director, Raghupati Singhania said.
He, however, said there is a good demand pick-up post unlocking of the COVID-19 restrictions, resulting in higher volumes in commercial vehicle and passenger car tyre segments.
Exports contributed significantly to the top-line and were higher by about 60 per cent as compared to previous year, he added.
''We hope that the inflationary pressures will taper down post resolution of the geopolitical tensions and supply chain disruptions,'' Singhania said.
On the outlook of the tyre industry, he said the company is optimistic ''as we see improved infrastructural activities, higher automotive demand and better external environment''.
The company has undertaken an expansion of its passenger car radial tyre capacity at a cost of Rs 530 crore. The additional volumes are expected to be available by the end of 2023 and will enhance sales and profitability, he added.
(With PTI inputs)