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JK Tyre’s revenue from operations advanced 63 per cent to Rs 2,927.28 crore.
Shares of the country’s leading tyre maker JK Tyre and Industries rose as much as 6.2 per cent to hit an intraday high of Rs 131 on the BSE a day after it reported March quarter earnings. JK Tyre reported net profit of Rs 189 crore against loss of Rs 107.80 crore in the corresponding period a year ago. Its revenue from operations advanced 63 per cent to Rs 2,927.28 crore compared with Rs 1,792.56 crore in the same quarter last year.
The business in the March quarter of last year was impacted adversely due to the strict lockdown imposed by the government to curb the spread of Covid-19, JK Tyre said.
“COVID-19 pandemic has caused serious disruptions on the global economic and business environment. Government of India declared lockdown on March 24, 2020 which has impacted the business activities of the Company,” JK Tyre said in a stock exchange filing.
Resumption of operations and improved business environment from second quarter onwards resulted in company attaining healthy sales and profitability, JK Tyre added.
“The year began with India in lockdown due to COVID-19 pandemic and the economy grinding to a halt with Q1FY21 almost a wash out. Economy started opening up gradually from mid-May. As a result of several initiatives taken JK Tyre recovered fast and achieved highest Sales in Q3FY21 & Q4FY21 increasing its market presence. With high capacity utilization, control on costs and reduced working capital, special focus on customer outreach and premium products offering, profitability improved significantly. Similarly, JK Tyre subsidiaries – Cavendish Industries and JK Tornel also added to substantial overall improvement in the profitability of the Company,” Raghupati Singhania, Chairman and Managing Director (CMD), JK Tyre said in a statement.
On a consolidated basis, JK Tyre’s net revenues stood at Rs 2,945 crore up by 63 per cent, its EBITDA or operating profit came in at Rs 472 crore and profit before tax (PBT) and profit after tax (PAT) on y-o-y basis stood at Rs 281 crore and Rs 195 crore respectively.
As of 11:15 am, JK Tyre shares traded 3 per cent higher at Rs 127.35, outperforming the Sensex which was trading on a flat note.
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