India's JK Tyre Q3 profit rises on lower costs

JK Tyre & Industries

06/02/2024 09:58

BENGALURU, Feb 6 (Reuters) - India's JK Tyre and Industries  JKIN.NS  on Tuesday reported a more than three-fold rise in third-quarter
profit, boosted by lower raw material costs. 
    Consolidated net profit rose to 2.21 billion rupees ($26.6 million) for the quarter ended Dec. 31 from 655.9 million rupees a year earlier. 
    This is the fifth straight rise in quarterly profit for the company, which counts Tata Motors  TAMO.NS  and Maruti Suzuki India  MRTI.NS  as its
customers.
    Revenue from operations rose 2.1% to 36.88 billion rupees.
    
    For further earnings highlights, click (Full Story)  
    
KEY CONTEXT
    At an industry level, demand for tyres has been weak despite start of the busy season, analysts said. Apollo Tyres  APLO.NS  and JK Tyre remain
participants in the market, not able to dictate prices. MRF  MRF.NS  continues to be market leader, they added.
    MRF has yet to report results and rival CEAT  CEAT.NS  reported a rise in profit similar to JK Tyre, thanks to price hikes.
    JK Tyre's revenue from operations rose for the fourteenth straight quarter. 

 PEER COMPARISON   
                             Valuation (next   Estimates (next 12 months)         Analysts' sentiment                                   
                             12 months)                                                                                                 
                    RIC      PE       EV/EBIT  Revenue growth %  Profit growth %  Mean rating*  # of analysts  Stock to price target**  Div yield (%)
                                      DA                                                                                                
 JK Tyre &                                                                                                                            
 Apollo Tyres Ltd                                                                                                                     
 MRF Ltd                                                                                                                               
 CEAT Ltd                                                                                                                             
 
* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The 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-DECEMBER STOCK PERFORMANCE    
    
    
    
-- All data from LSEG

-- $1 = 83.0290 Indian rupees   

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JK Tyres stock    https://tmsnrt.rs/3ujBJgE
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 (Reporting by Meenakshi Maidas in Bengaluru)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))