India's JK Tyre's quarterly profit drops for first time in two years
Nov 5 (Reuters) -India's JK Tyre & Industries JKIN.NS reported its first quarterly profit fall in two years on Tuesday, hurt by weak tyre sales to car, bus and truck makers.
The tyre maker's consolidated net profit for the July-September quarterfell 44% year-on-yearto 1.35 billion rupees ($16.1 million).
Itssecond-quarter revenue declined 7% to 36.22 billion rupees, after dropping for the first time in four years in theApril-June period.
For further earnings highlights, click nFWN3MC02F
KEY CONTEXT
Domestic sales of buses and trucks fell 12% in the second quarter, while car makers' sales declinedfor the first time in more than two years. This hurtJK Tyre's earnings as it garners over 80% its revenue from such customers.
Indian tyre makers are also grappling with higher rubber costs due to global supply shortages, which pushed up domestic rubber prices by 20% during the quarter.
Larger rival CEAT CEAT.NS and Goodyear India GDYR.BO also reported a decline in quarterly profit. MRF MRF.NS will report its resultslater this week.
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 & Industries Ltd | JKIN.NS | 10.00 | 6.35 | 6.88 | 12.69 | Buy | 5 | 0.72 | 1.15 |
CEAT Ltd | CEAT.NS | 15.72 | 7.55 | 10.25 | 13.71 | Buy | 15 | 0.86 | 1.10 |
Apollo Tyres Ltd | APLO.NS | 17.37 | 7.58 | 8.39 | 16.13 | Buy | 23 | 0.90 | 1.24 |
MRF Ltd | MRF.NS | 23.40 | 11.39 | 9.26 | 6.66 | Sell | 4 | 1.06 | 0.17 |
* 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
JULY-SEPTEMBER STOCK PERFORMANCE
($1 = 84.0680 Indian rupees)
JK Tyre vs Peers https://tmsnrt.rs/4fwKPsq
Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema
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