JK Tyre posts consolidated profit after tax of Rs 194 cr for March quarter

JK Tyre and Industries on Wednesday reported a consolidated profit after tax of Rs 194.96 crore for the March quarter of the previous fiscal against a consolidated loss of Rs 52.78 crore in the year-ago period.

Revenue from operations in the quarter under review rose by 63.21 per cent to Rs 2,927.28 crore compared to Rs 1,792.56 crore in Q4FY20, the company said.

For the fiscal 2020-21, profit after tax grew more than two-folds to Rs 330.93 crore over Rs 141.31 crore in FY20. The revenue from operations in the previous fiscal grew 4.35 per cent to Rs 9,102.20 crore against 8,722.70 crore logged in the year ended March 31, 2020.

“The year began with India in lockdown due to Covid-19 pandemic and the economy grinding to a halt with Q1FY21 almost a washout. Economy started opening up gradually from mid-May. As a result of several initiatives taken, JK Tyre recovered fast and achieved the highest sales in Q3FY21 and Q4FY21 increasing its market presence,” said Raghupati Singhania, Chairman and Managing Director, JK Tyre and Industries Ltd.

With high capacity utilization, control on costs and reduced working capital, special focus on customer outreach and premium products offering, profitability improved significantly, he said.

“JK Tyre subsidiaries--Cavendish Industries and JK Tornel-- also added to substantial overall improvement in the profitability of the company,” he said.

He said the company is fully geared to face challenges emanating from rising raw material prices and prevailing lockdowns under second wave of novel virus, adding, “despite these headwinds, the company expects to continue capturing opportunities that are arising in this new environment in India and abroad.”