JK Tyre: A safe ride
JK Tyre and Industries share price surged 6% to Rs 64.60 apiece on NSE after the company reported nearly 7 % on-year rise in net sales at Rs 1,473 crore in the July-September quarter.
The tyre maker’s net sales stood at Rs 1,378 crore in the corresponding quarter of the preceding fiscal.
EBITDA came in at Rs 228.08 crore in September 2020, up 11.92% from Rs 203.78 crore in September 2019.
JK Tyre reported a 34.59% decline in its consolidated net profit at Rs 109.68 crore for the quarter ended September. The company had posted a net profit of Rs 167.7 crore in the July-September period of previous fiscal. While revenue from operations increased to Rs 2,274.84 crore as compared with Rs 2,154.95 crore in the year-ago period.
JK Tyre achieved higher sales on the back of economic recovery, more so in the automotive sector, which has taken place during the quarter.
JK Tyre was well-positioned to take benefit of the emerging opportunity, and as a matter of fact, it could achieve healthy sales in the replacement market, doing better than the industry. The renewed thrust on exports resulted in higher export sales of Rs 337 crore during the quarter.
The tyre maker’s share price has more than doubled, rising 109% from March low of Rs 31.50 apiece.
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