Anuj Kathuria, President, JK Tyre & Industries, said, “While globally there are uncertainties which may slow down growth in international markets, there is a buoyancy in demand here. The festive season has given impetus to sales, especially in rural and semi-urban markets. With normal monsoons, rural economy picking up, we are planning for higher levels of production.”
Kathuria said the company’s manufacturing facilities are functioning at “good” utilisation levels. Investments are underway to increase capacity passenger car radials and truck bus radials in the two years to the close of FY24. “The company has already undertaken efficiency measures to boost production last year. Capacity is now coming up to meet future demand,” he said.
JK Tyre & Industries reported a 23% decline in net profit to Rs 50 crore for the second quarter ended Sep 30, 2022. Total income, however, increased to Rs 3,764 crore in the period under review, compared to Rs 2,998 crore in Q2FY22. The company’s operating margins improved due to better market conditions.
The company expects demand in the domestic market to remain strong going ahead due to improvement in economic activities and increased government spends on infrastructure projects.
Pressures from the unprecedented increase in raw material costs – seen in the last seven quarters – are also expected to ease off going ahead with some softening see in prices last quarter. “There are some commodities which are showing a downward trend, rest are stable. But we have to keep a close watch on how prices of crude and steel move in future”, Sanjeev Aggarwal, CFO, JK Tyre & Industries.
Overall, while even if Western Europe and United States slow down in the coming months, Aggarwal is optimistic that the domestic market will grow at a faster pace in the second half and make up for any weakening in international business, if at all.
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