JK Tyre & Industries (JK Tyre) on Wednesday reported a consolidated net profit of ₹195 crore for the fourth quarter ended March 31, compared with a net loss of ₹53 crore in the corresponding period last year.

The consolidated revenue for the quarter grew 63 per cent year-on-year (YoY) to ₹2,945 crore against ₹1,803 crore in the same period of the previous year.

“The board has recommended a dividend of ₹2 per equity share that is 100 per cent for the financial year ended March 31,” the company said in statement.

“The year began with India in lockdown due to Covid-19 pandemic and the economy grinding to a halt with the first quarter almost a wash out. Economy started opening up gradually from mid-May. As a result of several initiatives taken JK Tyre recovered fast and achieved highest sales in the third and the fourth quarters, increasing its market presence,” Raghupati Singhania, Chairman and Managing Director, JK Tyre, said. With high capacity utilisation, control on costs and reduced working capital, special focus on customer outreach and premium products offering, profitability improved significantly, he said.

“Similarly, JK Tyre subsidiaries — Cavendish Industries and JK Tornel — also added to substantial overall improvement in the profitability of the company. JK Tyre is fully geared to face challenges emanating from rising raw material prices and prevailing lockdowns under second wave of novel virus,” he added.

For the full financial year, the company has reported multi-fold growth (134 per cent) in its consolidated net profit to ₹331 crore against ₹141 crore in 2019-20.

Consolidated revenue also grew four per cent in 2019-20 to ₹9,145 crore (₹8,753 crore).

Shares of JK Tyre closed at ₹123.60 apiece on the BSE on Wednesday, up 0.90 per cent from the previous close.

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