JK Tyre & Industries on Friday reported a consolidated net profit of ₹44 crore for the first quarter ended June 30, a decline of 77 per cent on a sequential basis compared to ₹195 crore recorded in the January-March quarter of FY21.

The company had reported a net loss of ₹204 crore in the corresponding first quarter last fiscal.

Revenue for the quarter under review declined 11 per cent on quarter-on-quarter (QoQ) basis to ₹2,608 crore as against ₹2,927 crore in the January-March quarter. However, on year-on-year (YoY) basis, the revenue jumped over 130 per cent against ₹1,131 crore in April-June quarter 2020.

“The first quarter of this fiscal year started on a subdued note due to resurgence of second wave of the pandemic and lockdowns, which impacted demand. Despite these challenging market conditions, we achieved encouraging growth in revenues and profitability. With the rising input costs, operating margins were impacted,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said in a statement.

The company is taking judicious price increase across product categories. The company continued to focus on replacement and export sales and at the same time relationship with original equipment manufacturers (OEMs) are being expanded and strengthened, he said.

“We expect improved market conditions, emanating from higher inoculation levels and sharp recovery in economic activities, which is likely to improve sale in both replacement and OEM segments. Going forward we are optimistic and expect a healthy growth of the industry,” Singhania added.

Shares of JK Tyre closed at ₹161 apiece on the BSE on Friday, down 0.62 per cent from the previous close.