JK Tyre & Industries on Wednesday reported over three-fold jump in consolidated net profit to Rs 167.70 crore in the September quarter driven by gains from deferred tax liability.
The company had posted a consolidated net profit of Rs 45.78 crore in the same period last fiscal, JK Tyre & Industries said in a regulatory filing.
Consolidated revenue from operations during the second quarter stood at Rs 2,154.95 crore as against Rs 2,493.76 crore in the year-ago period, down 13.59 per cent, it added.
During the period under review, the company said it has re-assessed deferred tax Liability at 25.17 per cent as against 34.94 per cent earlier following reduction in corporate tax rate to 22 per cent announced by the government.
"Accordingly, reversal of provision for deferred tax liability of Rs 158.04 crore has been done during current quarter of financial year 2019-20," it said.
JK Tyre & Industries CMD Raghupati Singhania said Indian economy, more particularly the Auto Industry, is passing through challenging times. Production for both passenger and commercial vehicles has been cut drastically during the quarter gone by.
"The company is navigating through these difficult times by focusing on all-round cost reduction on one hand, and renewed focus on exports on the other," he added.
JK Tyre recorded 20 per cent increase in sales in two- and three-wheeler tyres in the current quarter, compared to preceding quarter, though it is a new entrant in this segment, Singhania added.
On the outlook, the company said it expects Indian economy to improve in the second half of current financial year and the green shoots are already visible with some improvement in economic activity.
Volumes are expected to increase, resulting in improvement in profitability in the remaining period of the current financial year, it added.
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