JK Tyre posts consolidated net profit of Rs 44 cr in June quarter

JK Tyre & Industries on Saturday said it has posted a consolidated net profit of Rs 44 crore for the first quarter ended June 2021.

The tyre major had reported a net loss of Rs 204 crore in the April-June period of 2020-21 fiscal amid COVID-19 disruptions.

Revenue from operations rose to Rs 2,608 crore in the first quarter from Rs 1,131 crore in the year-ago period, JK Tyre & Industries said in a statement.

On a standalone basis, the company posted a net profit of Rs 45 crore. The tyre maker had reported a net loss of Rs 75 crore during the June quarter of FY'21 fiscal.

Revenue from operations rose to Rs 1,726 crore during the period under review as compared with Rs 794 crore in the first quarter of 2020-21 fiscal.

Commenting on the results, JK Tyre Chairman and Managing Director Raghupati Singhania said the first quarter started on a subdued note due to resurgence of the second wave of the COVID-19 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. Nonetheless, we are taking judicious price increases across product categories," he added.

The company continued to focus on replacement and export sales and at the same time relationships with OEMs were being expanded and strengthened, Singhania noted.

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

Singhania said the company continues to give utmost primacy to the well-being and safety of its employees, business partners and society and in that regard has launched multiple initiatives.

The flagship company of JK Organisation, JK Tyre & Industries Ltd is amongst the top 25 tyre manufacturers in the world. It is present in over 100 countries with over 180 global distributors.

The company has 12 manufacturing facilities - 9 in India and 3 in Mexico that collectively produce around 32 million tyres annually.