JK Tyre & Industries (JKT) has reported a soft performance in 2QFY18 with its reported EBITDA declining by 46% YoY to Rs1.9bn. Its consolidated revenue grew by 7% YoY and 14% QoQ mainly aided by volume growth across product categories. Higher-than-estimated surge in raw material cost as % of sales led to dismal EBITDA margins of 9.5% as against 18.9% in 2QFY17. Net profit declined to Rs103mn from Rs1bn in 2QFY17. However, margin improved on QoQ basis owing to sequential decline in raw material prices and other expenditures. As per JKT, 2QFY18 performance is primarily driven by better demand in passenger segment (4W and 2W). Further, improvement in profitability of Mexican operations (JK Tornel) also aided performance. Looking...