JK Tyre skids and falls

JK Tyre is amongst the top losers on the BSE, going down almost 8% to Rs.140. Its 52-week high and low stands at Rs.186.55 and Rs.102.05 respectively.

The market is very disappointed with the company’s performance for Q1FY18. It had a reverse turnaround – it posted a consolidated net loss of Rs.108 crore v/s net profit of Rs.100 crore (YoY) on a very flat revenue of Rs.1943 crore v/s Rs.1958 crore.

The poor show was on account of a 30% increase in raw material prices which could not be passed on to the consumers which dented the bottomline. Cheaper Chinese imports and then the impact of destocking for GST affected the profitability.