JK Tyre sees lower earnings in 2022 despite higher sales

NEW DELHI, India—JK Tyre & Industries Ltd., India's third-largest tire maker and No. 22 wordwide, reported 31.6 percent higher sales for the year ended March 31 but suffered a 17.8-percent drop in pre-tax operating income.

Sales revenue grew to $1.59 billion, but the operating income fell to $147.6 million, trimming the operating ratio five points to 9.3 percent. Net income dropped 39.2 percent to $26.7 million.

JK Tyre derives most of its revenue (56 percent) from sales of truck/bus tires.

JK Tyre did not comment on the reasons for the earnings decline but noted that its Cavendish Industries (India) and JK Tornel (Mexico) subsidiaries both reported record sales for the period.

JK Tornel registered 87 percent sales growth during the year to $281.8 million, which helped the unit improve operating earnings nearly sixfold to $18.7 million, or 6.7 percent of sales.

JK founded a U.S. sales company, Western Tires Inc. in Houston, in mid-2020 to handle the importation and distribution of its products.

With the growth, JK Tornel's share of the firm's global sales improved to nearly 18 percent from 12.5 percent a year earlier.

Separately, JK Tyre said the board of directors has approved investing $70 million in expanding passenger tire capacity at its plant in Banmore, India.