JK Tyre & Industries reports 73% drop in net profit in the first quarter

Hero MotoCorp Ltd reported a 16.86% decrease in consolidated profit after tax, reaching 1417.93 crore rupees for the first quarter ending June 30. This decline was attributed to the high base effect.

In the same period last fiscal year, the company demonstrated a consolidated net profit of 1705.65 crore rupees. As stated by Hero MotoCorp in its announcement, last year's profit included a one-time income of 722 crore rupees, resulting from the dilution of the company's stake in investments in affiliated entities following the public and private placement of shares.

According to regulatory filings presented on Thursday, consolidated operating revenue in the first quarter amounted to 13126.35 crore rupees, compared to 9727.75 crore rupees a year earlier.

During this quarter, the company sold 16.77 lakh motorcycles and scooters, reflecting a 23% growth compared to the corresponding quarter of the previous year. Meanwhile, total expenses in the quarter increased to 11621.48 crore rupees compared to 8541.12 crore rupees in the same period last year.

Commenting on the results, Hero MotoCorp CEO Harshwardhan Chitale stated: 'We started fiscal year 27 with strong momentum, ensuring widespread growth in our premium, electric mobility segment, commuter segment, and global business.'

Furthermore, the company reported that revenue from its Parts, Accessories, and Merchandise (PAM) business reached 1689 crore rupees, representing a 30% increase compared to the previous year.

Jindal Stainless Ltd announced a year-on-year increase in consolidated net profit by 7.6%, reaching INR 769 crore in the June quarter, driven by increased revenue. In the same quarter last year, the company recorded a net profit of INR 715 crore, according to the report filed with the stock exchange.

The company's operating revenue grew by 10.5% year-over-year (YoY), amounting to INR 11,279 crore in the first quarter of fiscal year 2027, compared to INR 10,207 crore for the April-June period of the previous fiscal year. As of the end of June, the company's consolidated net debt reached INR 2,950 crore.

Abhidhuday Jindal, Managing Director of Jindal Stainless, noted that the company's results remained resilient despite an extremely dynamic operating environment characterized by supply chain disruptions and changing global trade conditions.

The company reported that in the initial weeks of the quarter, there were disruptions in the supply of industrial gases due to a crisis in West Asia. The company's management proactively mitigated this impact by increasing the use of liquefied natural gas to compensate for the limited availability of propane and LNG.

Despite the measures taken to address the issues, the company had to temporarily reduce production across all manufacturing units. Nevertheless, the company reported sales of finished products amounting to 580,805 metric tons in the first quarter of fiscal year 2027 and maintained healthy financial growth through sustained activity in the value-added product segment.

Export business remained stable amid the complex global situation. A diversified portfolio of markets, which includes expanding opportunities in South Korea, Japan, and Brazil, as well as a constant presence in Europe and the US, helped keep exports at 11% of total sales.

During the media call, Jindal emphasized the need to control growing imports from certain countries, particularly China. He stated that such import flows create challenges for domestic investment amidst rising demand for stainless steel in India, and called on the government not to extend Quality Control Orders (QCOs).

The statement noted that the company's strong performance was driven by steady demand in key end-use sectors, including transportation, infrastructure, manufacturing, and consumer sectors. The automotive segment continued to be a strong growth driver, and volumes of special grades also increased in the first quarter of fiscal year 2027. Furthermore, healthy sales growth was observed in the consumer goods and metro projects segments during the quarter, while demand from the railway sector remained constant. The company also received orders for specialized grades of stainless steel for the energy and oil and gas sectors.

Jammu & Kashmir Bank reported a decline in net profit by 11.5 percent, amounting to 428.80 crore rupees, for the first quarter of the current fiscal year.

Quarterly Financial Performance

In the April-June quarter of the fiscal year 26, the private banking lender demonstrated consolidated net profit of 484.53 crore rupees. However, in the first quarter of the current period, net profit decreased to 428.80 crore rupees.

Income and Margin

According to the report submitted to regulatory bodies, the bank's total income reached 3,765 crore rupees for the quarter, which is higher than the figure of 3,521 crore rupees for the same period last fiscal year. During this quarter, Net Interest Income (NII) increased by 2 percent, reaching 1,497 crore rupees compared to 1,465 crore rupees a year earlier. Meanwhile, the Net Interest Margin (NIM) stood at 3.28 percent.

Management Comments and Market

Amitava Chatterjee, Manager and CEO of J&K Bank, noted that the decrease in profitability during the quarter was caused by an industry phenomenon related to the rise in funds mobilization costs and the slowdown in mobilizing low-cost deposits, which put pressure on the margin.

On the stock market, J&K Bank shares were trading at a price of 153.80 rupees, representing a drop of 13.23 percent compared to the previous closing on the BSE exchange.