Total expenses spiked 24.7% to Rs 3,083.92 crore in Q4 FY22 over Q4 FY21. Meanwhile, cost of material consumed rose 20.67% to Rs 2,219.63 in Q4 FY22 as against Rs 1,839.40 crore recorded in Q4 FY21.

Profit before tax slumped 84.2% to Rs 44.36 crore in Q4 FY22 from Rs 280.56 crore in Q4 FY21. EBITDA tumbled 50% year on year to Rs 236 crore in Q4 FY22 from Rs 472 crore registered in Q4 FY21. EBITDA margin declined to 7.1% in Q4 FY22 from 16.1% in Q4 FY21.

On full year basis, the company recorded 29.6% decline in net profit to Rs 208.29 crore despite of a 31.6% surge in net sales to Rs 11,982.96 crore in FY22 over FY21.

Commenting on the results, Dr. Raghupati Singhania, the chairman and managing director (MD) of JK Tyre & Industries said, “JK Tyre achieved highest ever revenue of Rs. 12,000 crore in FY2022. There is a good demand pick-up post unlocking of the Covid 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% viz-a- viz last year.”

He further added, “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 ta-ken from time to time in all tyre categories. We hope that the inflationary pressures will taper down post resolution of the geopolitical tensions and supply chain disruptions. The company's subsidiaries - Cavendish Industries and JK Tornel, Mexico have made significant contribution to the revenues. Both the entities have attained all time high sales for FY-22, We believe this trend should continue in future as well.”

Commenting on future outlook, Dr. Singhania said, “We are optimistic on the outlook of the Tyre Industry as we see improved infrastructural activities, higher automotive demand and better extrernal environment. The company has undertaken an expansion of its PCR capacity at a cost of Rs 530 crore. The additional volumes are expected to be available by end of 2023 and, will enhance sales and profitability.”

Meanwhile, the board of directors of the company declared a dividend of Rs 1.50 per equity share, for the financial year ended 31 March 2022.

JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.

Shares of JK Tyre & Industries declined 1.77% to close at Rs 122.10 on Friday, 20 May 2022.