JK Tire's revenue from operations advanced 63 per cent to Rs 2,927.28 crore.Shares of the country's leading tire maker JK Tire and Industries rose as much as 6.2 percent to strike an intraday high of Rs 131 on the BSE a day after it reported March quarter incomes.
JK Tyre reported net earnings of Rs 189 crore against loss of Rs 107.80 crore in the corresponding period a year earlier.
Its income from operations advanced 63 per cent to Rs 2,927.28 crore compared with Rs 1,792.56 crore in the same quarter last year.The business in the March quarter of last year was affected adversely due to the strict lockdown enforced by the government to curb the spread of Covid-19, JK Tire stated.
COVID-19 pandemic has triggered severe disturbances on the international financial and service environment.
Federal government of India declared lockdown on March 24, 2020 which has actually impacted business activities of the Company, JK Tyre said in a stock market filing.Resumption of operations and enhanced service environment from 2nd quarter onwards led to company obtaining healthy sales and profitability, JK Tyre added.
The year started with India in lockdown due to COVID-19 pandemic and the economy grinding to a halt with Q1FY21 almost a wash out.
Economy started opening up slowly from mid-May.
As a result of several initiatives taken JK Tire recuperated quick and accomplished greatest Sales in Q3FY21 - Q4FY21 increasing its market presence.
With high capacity usage, control on expenses and decreased working capital, unique concentrate on consumer outreach and premium products using, success enhanced significantly.
Likewise, JK Tyre subsidiaries - Cavendish Industries and JK Tornel likewise contributed to considerable general improvement in the success of the Company, Raghupati Singhania, Chairman and Handling Director (CMD), JK Tyre stated in a statement.On a combined basis, JK Tire's net profits stood at Rs 2,945 crore up by 63 percent, its EBITDA or operating earnings came in at Rs 472 crore and profit before tax (PBT) and profit after tax (PAT) on y-o-y basis stood at Rs 281 crore and Rs 195 crore respectively.As of 11:15 am, JK Tyre shares traded 3 per cent higher at Rs 127.35, exceeding the Sensex which was trading on a flat note.