JK Tyre share price more than doubles in 7 months; stock surges 9% today on higher sales in Q2 

By: |
October 22, 2020 10:25 AM

JK Tyre and Industries said that COVID-19 pandemic has caused serious disruptions on the global economic and business environment.

ICICI Bank, Cipla, Infosys, diwaliAs Diwali 2020 is around the corner, Kotak Securities has prepared a list of five stocks, ranging from pharmaceuticals to bank stocks to IT stocks, with a three-month investment horizon

JK Tyre and Industries share price surged 9 per cent to Rs 66 apiece on BSE after the company reported nearly 7 per cent on-year rise in net sales at Rs 1,473 crore in the July-September quarter. The company’s net sales stood at Rs 1,378 crore in the corresponding quarter of the preceding fiscal. EBITDA came in at Rs 228.08 crore in September 2020, up 11.92 per cent from Rs 203.78 crore in September 2019. “JK Tyre achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter,” Raghupati Singhania, Chairman and Managing Director of JK Tyre and Industries. 

JK Tyre and Industries share price has more than doubled, rising 109 per cent from March low of Rs 31.50 apiece. Singhania also said that 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 Rs 337 crore during the quarter. Singhania joined the company as an executive and over the years has been deeply involved in various activities of the company in different positions, currently being deputy managing director.

Around 10.15 AM, JK Tyre and Industries shares were trading 6.27 per cent higher at Rs 64.40 apiece, as compared to a 0.32 per cent fall in the S&P BSE Sensex. On the other hand, JK Tyre and Industries reported a 34.59 per cent decline in its consolidated net profit at Rs 109.68 crore for the quarter ended September. The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal. While revenue from operations increased to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period. 

The company said that COVID-19 pandemic has caused serious disruptions on the global economic and business environment. Lockdown declared by the government impacted the business activities of the company. “Company’s belief was reinforced during the quarter when it could attain healthy sales on account of improved business sentiments,” it said. Based on the indicators of future economic conditions, the company expects to recover the carrying amount of these assets and ensure that sufficient liquidity is available.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sebi slaps Rs 10 lakh fine on individual for insider trading in DHFL shares
2Sensex, Nifty recover from deep in red to end with gains; where are stock markets headed now?
3FPI buying focused on bank stocks; check what else FPIs, MFs, retail investors bought last quarter