Leading Indian tyre manufacturer, JK Tyre and Industries Ltd. reported a decline of 34.59 percent year-on-year in its consolidated net profit to Rs109.68cr for Q2FY21. However, the manufacturer has shown a strong growth over Q1FY21 when it had registered a loss of Rs204.17cr due to the pandemic outbreak.
The revenue from manufacturing operations increased 5.5% to Rs2,274.84cr. Revenue from operation almost doubled from Rs1,130.80cr in the previous quarter. On a consolidated basis, it recorded a Sale of Rs2,290cr, while the Operating Profit was Rs368cr and the Profit before Tax was Rsl67cr.
Raghupati Singhania, Chairman and Managing Director of the company, said- "JK Tyre achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter. The company was well positioned to take benefit of this emerging opportunity, and as a matter of fact, it could achieve healthy sales in the replacement market, doing better than the industry. The renewed thrust on exports resulted in higher Export Sales of Rs337cr during the quarter."
Singhania added that "Profitability improved significantly due to aggressive cost-cutting, more particularly Fixed costs. The company could achieve savings in interest costs due to its ability to reduce its working capital requirements."
He mentioned that the company's subsidiaries like Cavendish and JK Tornel, Mexico, significantly contributed to both improved Sales and Profitability.
Also See:JK Tyre Focuses On Revolutionizing Global Tyre World
Meanwhile, Anshuman Singhania was appointed as the Managing Director of JK Tyre & Industries by the Board of Directors, effective from October 21, 2020.
"Anshuman joined the company as an Executive and over the years has been deeply involved in various activities of the company in different positions, current being Dy. Managing Director. During this period, he has demonstrated leadership and vision under the mentorship of Dr. Raghupati Singhania CMD and the Board," the company said.
About JK Tyre & Industries Ltd:
The company is the undisputed market leader in Truck/Bus Radials in India, with 400+ selling locations, 4,000 strong dealer network served by 9 plants in India and 3 plants in JK Tornel, Mexico. With state-of-the-art modern production facilities in all 12 plants, the total production capacity is over 20 million tyres p.a.
