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