JK Tyre & Industries Ltd has reported a consolidated net profit of ₹168 crore for the second quarter ended September 30, up 265 per cent against ₹46 crore in the corresponding period last year.
However, consolidated revenue from operations declined 15 per cent year-on-year (YoY) to ₹2,162 crore (₹2,548 crore).
“The Indian economy, more particularly the auto industry, is passing through challenging times. Production for both passenger and commercial vehicles has been cut drastically during the quarter gone by. The company is navigating through these difficult times by focussing on all-round cost reduction on one hand, and renewed focus on exports on the other,” Raghupati Singhania, the company’s CMD, said on Wednesday after the results.
However, against Q1, JK Tyre recorded an impressive 20 per cent increase in sales in Q2 in two- and three-wheeler tyres, though it is a new entrant in the segment, he added.
“JK Tyre has been awarded 5-star grading by the British Safety Council, and the prestigious ‘Sword of Honour’ for maintaining the highest safety standards. It is a matter of great satisfaction that four of its five manufacturing facilities have received this coveted certification,” he further said.
The company expects the economy to improve in the second half of the current fiscal, with green-shoots already visible. Volumes are expected to increase, resulting in an improvement in profitability in the remaining period of the current fiscal, the company said.
The company’s subsidiaries, JK Tornel, Mexico and Cavendish Industries Ltd, continue to perform well, it added.
JK Tyre shares closed at ₹70.25 apiece on the BSE on Wednesday, up 1.08 per cent from the previous close.