JK Tyre & Industries posts Q1 profit of Rs 64.24 cr

JK Tyre & Industries Ltd today reported a consolidated net profit of Rs 64.24 crore for the first quarter ended June 30, mainly driven by robust sales.

The company had posted a net loss of Rs 117.21 crore in the year-ago quarter, JK Tyre & Industries said in a BSE filing.

Revenue from operations during the first quarter stood at Rs 2,439.52 crore. It was at Rs 1,931.80 crore in the same period last fiscal.

The two figures are not comparable as revenue from operations is net of taxes after GST implementation in July 2017, while in the year-ago quarter it was inclusive of excise duty, the company said.

Commenting on the results, JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said in the first quarter, there was higher volume across categories, especially in truck/bus radial, passenger car and light truck radials.

"Increased volumes and internal efficiencies helped improve profitability," he added.

Singhania said the company has further deepened its penetration in the market and expansion of truck/bus radial capacity undertaken at Cavendish will further strengthen leadership in this segment.

"We are excited at the growth of the passenger car industry and are well prepared to keep pace with opportunities arising therefrom," he added.

The two/three-wheeler segment is also growing and the company has enhanced presence in this segment.

During the quarter, the company's subsidiaries namely, JK Tornel, Mexico and Cavendish Industries Ltd have performed well, JK Tyre & Industries said.

Moreover, labour restructuring completed at JK Tornel last year is reaping good dividend which has added to the over-all profitability, it added.