Shares of tyre manufacturer JK Tyre Industries rose as much as 15.4 per cent to hit fresh 52-week high of Rs 133.40 on the BSE after it reported strong earnings in quarter ended December 2020. The Delhi-based tyre maker in an exchange filing post market hours on Thursday said that its consolidated profit came in at Rs 224 crore compared with Rs 11 crore during the corresponding period a year ago.
Its revenue from operations climbed 22 per cent to Rs 2,769 crore versus Rs 2,275 crore in the same quarter last year. JK Tyre’s earnings before interest, taxes, depreciation, and amortization (EBITDA) or operating profit doubled to Rs 507 crore.
Raghupati Singhania, Chairman and Managing Director, said, ‘TK 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 effrciencies and reduction in interest costs, contributed to improved profitability.”
“All nine, JK Tyre plants in India, operated at close to 96 per cent capacity utilization during Q3. It is a matter of satisfaction that some of the plants have achieved certain global benchmark operating parameters,” Mr Singhania added.
The company foresees a sustained sales and profitability during the coming period, JK Tyre said in an exchange filing.
As of 12:51 pm, JK Tyre shares traded 13.15 per cent higher at Rs 131, outperforming the Sensex which was down nearly 1 per cent.