- 04 Feb 2022
- ICICIdirect Research
JK Tyres reports resilient performance for Q3FY22JKTYRE - 185 Change: 0.90 (0.49 %)
News: Company reported steady performance in Q3FY22 with consolidated sales for the quarter coming in at ₹ 3,076 crore up 3% QoQ.. EBITDA for the quarter came in at ₹ 274 crore with corresponding EBITDA margin at 8.9% (down 90 bps QoQ). PAT in Q3FY22 was at ₹ 57 crores, down 14.5% QoQ. Standalone EBITDA margins stood at 9.2% (down ~30 bps QoQ).
Views: Quarterly performance was better than some of its listed peers. Gross margin decline was limited to 20 bps sequentially with rise in other expenses being a key reason for QoQ dip in EBITDA margins. Consolidated PAT came in lower QoQ tracking higher effective tax rate (~39%). In response to earlier news of CCI imposing penalty on tyre players alleging cartelisation, company via notification to stock exchanges has informed that there has been no wrongdoing on the part of company and it is consulting its legal advisors evaluating further legal options against the same.