JK Tyre reported a net consolidated net loss of Rs204.17 crore in the first quarter of FY 21.
The company had reported a net profit of Rs16.12 crore for the same quarter of the previous financial year.
Net sales plunged to Rs 1,138.14 crore in Q1FY21 as compared with Rs 2,581.47 crore in Q1FY20.
Dr Raghupati Singhania MD of JK Tyre said, “It was indeed one of the toughest Quarters ever. Taking the challenges head-on, the Company could achieve sales of Rs.1138 Crores during Q1”.
“Economic activity, which came to a halt towards the end of the last quarter started slowly in mid-May. Our preparedness to meet replacement demand paid off well. As the lock down was progressively eased we were able to cater to market demand, especially in the Commercial segment. In fact, the Company has achieved the highest ever sales in the Replacement market for its India Operations in June 20 which resulted in a growth of approx. 3% on YoY basis. OEMs volumes are still reeling from the impact of COVID-19, resulting in sluggish vehicle manufacturing”.
He further said, “There was a tremendous focus on conserving cash and aggressive cost savings. We would be able to sustain a good portion of these cost savings on an ongoing basis”
Cavendish Sales of Commercial and 2/3 Wheeler tyres did well during the Quarter with a positive EBITDA.
COVID-19 pandemic conditions in Mexico are far more severe. Though plants started operating from early June, the overall demand continues to be subdued.