New Delhi – India’s JK Tyre & Industries Ltd (JK Tyre) has reported a consolidated net loss of INR530 million (€6 million) for the fourth quarter of the financial year ended 31 March, due mainly to Covid-19 pandemic.
The figure is down from INR336 million net profit posted in the final quarter of 2019 fiscal year, the tire maker announced 16 June.
For the full year, net profit fell 17% to INR1.4 billion on 15% lower revenue at INR87.5 billion.
“Tire industry had been facing a downturn before the current pandemic, which further aggravated the situation posing unprecedented challenges,” said Dr. Raghupati Singhania chairman and managing director of the company.
According to Singhania, both the commercial and passenger segments were “severely impacted” by the Covid-19 pandemic.
In addition, the tire maker encountered headwinds on the currency front with the Indian rupee weakening significantly towards the end of the financial year.
“US Dollar liability of the company along with its subsidiaries Cavendish and JK Tornel, Mexico had to be recorded at the exchange rates prevailing on the last day of the financial year, which… impacted the profit before tax,” he noted.
To address the current financial issues, Singhania said JK Tyre had taken several measures to reduce fixed costs across all activities but did not elaborate further.
“We have restarted our plants and are working to streamline operations and sales to ensure sustainable growth and improved profitability,” he concluded.
