JK Tyre & Industries on Thursday reported a consolidated net loss of ₹204 crore for the first quarter ended June 30, due to the halt in economic activities during the Covid-19 pandemic.

The company had reported a net profit of ₹16 crore in the April-June quarter last year.

Revenue of the company also declined by 56 per cent year-on-year (YoY) to ₹1,131 crore during the quarter as against ₹2,575 crore in the corresponding period the previous year.

“It was indeed one of the toughest quarters ever. Economic activity, which came to a halt towards the end of the last quarter, started slowly in mid-May. Our preparedness to meet replacement demand paid off well. As the lockdown was progressively eased, we were able to cater to the market demand, especially in the commercial segment,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said.

In fact, the company has achieved the highest ever sales in the replacement market for its India operations in June, which resulted in a growth of around three per cent on YoY basis, he said.

“OEM (original equipment manufacturers) volumes are still reeling from the impact of Covid-19, resulting in sluggish vehicle manufacturing,” he said.

Singhania further added that there was tremendous focus on conserving cash and aggressive cost savings, so the company can sustain a good portion of these cost savings on an ongoing basis.

Shares of JK Tyre closed at ₹67.30 apiece on Thursday, down 1.97 per cent from the previous close.

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