JK Tyre & Industries on Wednesday reported a 34.59 per cent decline in its consolidated net profit at Rs 109.68 crore for the quarter ended September 2020.
The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal.
The company’s revenue from operations, however, increased to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period.
“The company achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter. The company was well positioned to take benefit of this emerging opportunity, and as a matter of fact, it could achieve healthy sales in the replacement market, doing better than the industry,” JK Tyre Chairman and Managing Director Raghupati Singhania said in a statement.
The renewed thrust on exports resulted in higher export sales of Rs 337 crore during the quarter, he added.
“Profitability improved significantly due to aggressive cost cutting, more particularly fixed costs. The company could achieve savings in interest costs due to its ability to reduce its working capital requirements,” Singhania noted.
The company said its board has appointed Anshuman Singhania as managing director with immediate effect from October 21, 2020.
Singhania joined the company as an executive and over the years has been deeply involved in various activities of the company in different positions, current being deputy managing director.