JK Tyre’s fourth quarter profit fell by 43%

Business Business: Indian tyre maker JK Tyre & Industries reported a 43% drop in its consolidated net profit to ₹97 crore in the fourth quarter of the fiscal, from ₹169 crore in the same period last year. The decline was mainly due to weak demand for bus and truck tyres.

However, the company’s revenue recorded a marginal growth of 1.6% to ₹3,759 crore. This growth is believed to be possible due to the increase in prices.

Tire companies in India are currently getting fewer orders from OEMs (original equipment manufacturers) due to slow automobile sales and are mainly focused on the tyre replacement market, which generates about two-thirds of JK Tyre’s revenue.