Companies

JK Tyre Q2 net down 34% at ₹110 crore

Our Bureau New Delhi | Updated on October 21, 2020

The Board of Directors of JK Tyre & Industries (JK Tyre) on Wednesday appointed Anshuman Singhania as Managing Director of the company.

He joined the company as an executive and over the years has been involved in various activities of the company in different positions, the tyre major said while announcing its second quarter results.

The company reported a consolidated net profit of ₹110 crore for the second quarter ended September 30, down 34 per cent compared with ₹168 crore in the corresponding period last year.

However, consolidated revenue from operations grew 6 per cent year-on-year to ₹2,275 crore (₹2,155 crore).

On quarter-on-quarter basis, the company's financial results improved a lot. It had, during the April-June quarter, reported a net loss of ₹204 crore and its revenue from operations was at ₹1,131 crore.

Economy recovery

“JK Tyre achieved higher sales on the back of economic recovery which has taken place during the quarter. The company was well positioned to take benefit of this emerging opportunity, and could achieve healthy sales in the replacement market, doing better than the industry,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said.

The renewed thrust on exports resulted in higher export sales of ₹337 crore during the quarter, he added.

He said: “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 working capital requirements.”

Singhania further said the company’s subsidiaries — Cavendish and JK Tornel, Mexico — contributed significantly to both improved sales and profitability.

JK Tyre’s shares closed at ₹60.60 apiece on the BSE on Wednesday, up 3.24 per cent from the previous close.

Published on October 21, 2020

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