JK Tyres & Industries soared 13.75% to Rs 131.50 after the company's consolidated net profit surged to Rs 230.66 crore in Q3 December 2020 over a net profit of Rs 11.65 crore in Q3 December 2019.
Consolidated net sales jumped 25.9% to Rs 2769.28 crore in Q3 FY21 as against Rs 2199.80 crore in Q3 FY20. This was best ever sales for any quarter. EBITDA doubled to Rs 507 crore in Q3 December 2020. Profit before tax was at Rs 342.97 crore in Q3 December 2020 as against Rs 23.31 crore in Q3 December 2019. Tax expense for the quarter stood at Rs 67.88 crore as against Rs 14.87 crore in Q3 December 2019. The Q3 result was declared after market hours yesterday, 21 January 2021.
Commenting on the results, Dr Raghupati Singhania, the chairman and managing director of JK Tyres & Industries, has said that: "JK Tyre tumed 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. Continued focus on improvement in operating efficiencies and reduction in interest costs, contributed to improved profitability."
"All nine, JK Tyre plants in India, operated at close to 96% capacity utilization during Q3. It is a matter of satisfaction that some of the plants have achieved certain global benchmark operating parameters," Dr Singhania added.
Cavendish Industries, a JK Tyres & Industries subsidiary, also recorded excellent results in the Q3 FY 2020-21. Capacity utilization at its three plants was nearly 95%. Cavendish achieved sales of Rs 788 crore and attained an all-time high PBT of Rs 92 crore during the quarter under review. 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 a sustained sales and profitability during the coming period.
JK Tyre & Industries is currently the market leader in truck bus radial segment. The company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-the-road and two & three-wheelers.
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