Shares of JK Tyre & Industries were up 5 per cent at Rs 87.25 on the BSE in intra-day trade on Thursday after the company said its subsidiary Cavendish has reported an over two-fold jump in its operating profit during the October-December 2020 quarter (Q3FY21). The stock of the tyre manufacturer was trading close to its 52-week high level of Rs 87.70 touched on January 17, 2020.
Cavendish Industries, a subsidiary of JK Tyre & Industries, reported a record performance for Q3 as Ebitda (earnings before interest, taxes, depreciation, and amortization) jumped 128 per cent year-on-year (YoY) to Rs 157 crore. Sales were up 30 per cent YoY at Rs 788 crore over the previous year quarter.
The management said increased volumes in truck tyres, both radial and bias, LCV and agricultural tyres have contributed to higher sales. Cavendish, during the quarter, operated all its 3 plants at 95 per cent capacity utilization and also achieved best-ever operating efficiencies on several parameters, it said.
"The demand recovery in the market is quite robust across segments. The larger commercial tyres are also moving well with replacement demand clocking 30 per cent growth and OEMs offtake slowly coming back. Cavendish looks forward to sustained improvement in sales and profitability in the coming period," said Dr Raghupati Singhania, chairman of the company.
Meanwhile, JK Tyre & Industries informed the stock exchanges that the meeting of the board of directors of the company is scheduled on January 21, 2021 to consider and approve the unaudited financial results of the for the third quarter ended December 31, 2020.