Refile: India's JK Tyre posts smaller quarterly profit on tepid truck, bus sales

JK Tyre & Industries

20/05/2025 13:42

Corrects date

May 20 (Reuters) - India's JK Tyre JKIN.NS reported a drop in fourth-quarter profit on Tuesday, hurt by tepid demand in the truck and bus segment.

The company's consolidated net profit dropped 43% to 970.4 million rupees ($11.3 million), from 1.69 billion rupees a year before.

Quarterly revenue rose 1.6% to 37.59 billion rupees, likely helped by price hikes.

For further earnings highlights, click nFWN3RR331

KEY CONTEXT

Indian tyre makers are facing sluggish auto sales and are largely depending on replacement demand to drive volumes.

Overall, automobile sales grew 1.8% in the January-March period, down sharply from the 20% growth seen in the year before.

JK Tyre, which supplies to the likes of Maruti Suzuki MRTI.NS and Tata Motors TAMO.NS, derives about a quarter of its revenues from sales to automakers and two-thirds from the tyre replacement market.

Rivals Apollo Tyres and CEAT also reported lower quarterly profits.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
JK Tyre
JKIN.NS
12.76
7.34
6.87
32.14
Buy
5
0.87
1.28
CEAT
CEAT.NS
21.40
8.74
13.71
44.22
Buy
17
1.06
0.78
Apollo Tyres
APLO.NS
17.13
8.08
6.82
34.10
Buy
25
0.97
1.21
MRF
MRF.NS
28.08
12.06
9.26
20.68
Sell
4
1.06
0.14

 * The mean of analyst 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

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 85.5370 Indian rupees

JK Tyre v Peers https://tmsnrt.rs/4dztcsc

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))