JK Tyre's quarterly profit jumps to ₹230 cr

JK Tyre & Industries Ltd on Thursday reported a multi-fold jump in consolidated net profit at ₹230.46 crore in the third quarter ended December 31, 2020 riding on robust sales and aided by favourable foreign exchange fluctuations.

The company had posted a consolidated net profit of ₹10.27 crore in the third quarter of last fiscal, JK Tyre & Industries said in a regulatory filing.

Consolidated revenue from operations during the period under review stood at ₹2,769.28 crore as against ₹2,199.80 crore in the corresponding quarter last fiscal, it added.

"For the quarter, exceptional items include favourable foreign exchange fluctuation of ₹40.18 crore," the company said.

Commenting on the performance, JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said,"JK Tyre turned out an excellent performance in Q3 - in terms of sales and profitability. This was largely driven by the increased demand for passenger, commercial vehicle as well as farm tyres."

He further said continued focus on improvement in operating efficiencies and reduction in interest costs, contributed to improved profitability.

During the third quarter all the nine plants of the company in India operated at close to 96 per cent capacity utilisation, Singhania said.

Cavendish Industries Ltd, a JK Tyre subsidiary, also achieved capacity utilisation of nearly 95 per cent at its three plants. It had sales of ₹788 crore, the company said.

"Besides, the company's subsidiary in Mexico - JK Tornel, continued to perform well, marked by a significant improvement in sales and profitability. The company foresees sustained sales and profitability during the coming period," it said.