Indian Tyre Industry major JK Tyre & Industries Ltd., (JKTIL) today announced its results for Q2 of the current Financial Year. On a consolidated basis, Net Sales are at Rs. 2,162 crores with Operating Profit at Rs.303 Crores. On a standalone basis, JK Tyre recorded Turnover of Rs.1378 crores with Operating Profit at Rs.204 crores.
Profit After Tax (PAT) on a standalone basis is Rs.197 Crores after taking one time credit for the Deferred Tax liability no longer required. PAT on a consolidated basis aggregates to Rs.168 crores.
Commenting on the results, Dr Raghupati Singhania, Chairman & Managing Director of the Company 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. JK Tyre recorded an impressive 20% increase in sales in 2/3 wheeler tyres in the current quarter, compared to preceding quarter, though it is a new entrant in this segment”.
Dr. Singhania further added that, “JK Tyre has been awarded 5 star grading by British Safety Council, and the prestigious ‘Sword of Honour’ for maintaining highest safety standards. It is a matter of great satisfaction that four of its five manufacturing facilities have received this coveted certification.”
The Company expects Indian economy to improve in the 2nd 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.
The Company’s subsidiaries namely, JK Tornel, Mexico and Cavendish Industries Ltd. continue to perform well.