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By TT News| Oct 22, 2020

JK Tyre Q2 sales up, net profit plunges

Recovery in the automotive sector has helped JK Tyre to report a growth in sales in the July-September 2020 quarter.

Sales rose 5.5% Rs 2274.84 crore in Q2 FY2020-21 as against Rs2154.95 crore in Q2FY2019-20.

However, JK Tyre reported a 34.6% drop in its consolidated net profit at Rs109.6 crore for the July-September 2020, quarter.

The company had posted a net profit of Rs167.70 crore in the same period of last fiscal.

Commenting on the results, Dr. 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 Rs. 337 Crores during the quarter.”

Dr 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.”

Dr Singhania further mentioned that the company’s subsidiaries i.e., Cavendish and JK Tornel, Mexico, contributed significantly to both, improved Sales and Profitability”.

 

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