JK Tyre turns red post Q1FY17's profit dilapidation

JK Tyre has declared its Q1FY17 results on Tuesday. The company’s revenue has increased by 0.81 per cent to Rs 1704 crore in Q1FY17 as compared to same period in previous fiscal. Its EBITDA too has risen by 19 per cent to Rs 357 crore in Q1FY17 on a yearly basis. JK Tyre’s EBITDA margin has expanded by 307 basis points to 20.05 per cent in Q1FY17 as compared to same period in previous financial year. However, the company’s net profit has decreased by 10.96 per cent to Rs 104 crore in Q1FY17 on a yearly basis. Its net profit margin has contracted by 79 basis points to 5.84 per cent in Q1FY17 as compared to same period in previous fiscal.

On the geographic segmental revenue front, JK Tyre has earned 84.66 per cent from India;15.31 per cent from Mexico; and 0.03 per cent from others during Q1FY17.

The share price of JK Tyre has declined by 6.57 per cent on bourses in early trades; and is trading at Rs 101.6 on an intra day basis.

JK Tyre has global presence in 100 countries across six continents, backed by production support from 12 plants - 9 in India and 3 in Mexico. The capacity across 12 plants is about 35 million tyres per annum.