JK Tyre’s income from operations superior 63 per cent to Rs 2,927.28 crore.
Shares of the nation’s main tyre maker JK Tyre and Industries rose as a lot as 6.2 per cent to hit an intraday excessive of Rs 131 on the BSE a day after it reported March quarter earnings. JK Tyre reported internet revenue of Rs 189 crore in opposition to lack of Rs 107.80 crore within the corresponding interval a yr in the past. Its income from operations superior 63 per cent to Rs 2,927.28 crore in contrast with Rs 1,792.56 crore in the identical quarter final yr.
The enterprise within the March quarter of final yr was impacted adversely as a result of strict lockdown imposed by the federal government to curb the unfold of Covid-19, JK Tyre stated.
“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 stated in a inventory change submitting.
Resumption of operations and improved enterprise surroundings from second quarter onwards resulted in firm attaining wholesome gross 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 stated in an announcement.
On a consolidated foundation, JK Tyre’s internet revenues stood at Rs 2,945 crore up by 63 per cent, its EBITDA or working revenue got here in at Rs 472 crore and revenue earlier than tax (PBT) and revenue after tax (PAT) on y-o-y foundation stood at Rs 281 crore and Rs 195 crore respectively.
As of 11:15 am, JK Tyre shares traded 3 per cent larger at Rs 127.35, outperforming the Sensex which was buying and selling on a flat be aware.
