India's JK Tyre posts second straight drop in profit on weak demand from bus, truck makers

JK Tyre & Industries

04/02/2025 12:05

Feb 4 (Reuters) - India's JK Tyre  JKIN.NS  reported a smaller profit for the second straight
quarter on Tuesday, hurt by weak demand from truck and bus customers.
    The tyre maker's profit sank 77% to 515.2 million rupees ($5.92 million) in the third quarter from 2.21
billion rupees a year before.
    Its revenue dropped marginally to 36.74 billion rupees.
    Expenses rose 7%, led by a 6% climb in raw material costs.
        
  
        KEY CONTEXT
  
        Indian tyre makers are suffering from weak demand for new vehicles in the country this fiscal year
and those more reliant on sales to truck and bus customers have been hit harder.
  
        JK Tyre gets at least half of its revenue from such customers, mostly in its home market of India,
that forms an even higher 80%-90% of revenue.
  
        Commercial vehicle sales rose 1.2% during the quarter, but trailed overall auto sales growth of
3.1%, industry data showed.
  
        
  
        PEER COMPARISON
  
                                             Estimates (next 12         Analysts' sentiment        
                                                  months)                                          
                      RIC    PE     EV/EBI  Revenue     Profit    Mean     # of     Stock to       Div
                                    TDA     growth (%)  growth    rating*  analyst  price          yield
                                                        (%)                s        target**       (%)
 JK Tyre                                                                                       
 Apollo Tyres                                                                                  
 MRF                                                                                            
 CEAT                                                                                          
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT   
    
    OCTOBER TO DECEMBER STOCK PERFORMANCE
    
-- All data from LSEG
-- $1 = xx Indian rupees


($1 = 87.0800 Indian rupees)

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JK Tyre v Peers    https://tmsnrt.rs/3Emf47X
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 (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))