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JK Tyre & Industries on Thursday posted consolidated net profit of ₹2,30.46 crore for the third quarter ended December 31, a multi-fold increase from ₹10.27 crore in the year-earlier period.
The growth was mainly driven by increased demand from all vehicle segments, including passenger, commercial as well as farm.
Revenue from operations grew to ₹2,769.28 crore against ₹2,199.80 crore.
“For the quarter, exceptional items include favourable foreign exchange fluctuation of ₹40.18 crore,” the company said.
“JK Tyre turned out an excellent performance in Q3 in terms of sales and profitability. This was largely driven by the increased demand for passenger, commercial vehicles as well as farm tyres,” JK Tyre & Industries CMD Raghupati Singhania said.
Shares of Tata Motors, IDFC First Bank, Tata Elxsi, Trident, JK Tyre & Industries and Sobha, from the S&P BS500 index have surged over 50 per cent in the past month on the back of a strong rally in the equity markets. In comparison, S&P BSE500 index has gained 11 per cent, while the benchmark S&P BSE Sensex was up 10 per cent during the month.
Tata Motors hit a 31-month high of Rs 295, up 7 per cent in the intra-day deals today, and was the top gainer among the list. The stock has zoomed 80 per cent in the past one month on Tesla tie-up buzz. The stock of the Tata Group commercial vehicles company was trading at its highest level since June 2018. Moreover, its market capitalisation swell to Rs 90,708 crore at 11:40 am, inching towards the Rs 1-trillion mark.
JK Tyre Q3 results: Net profit grows manifold to Rs 230 crore
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Synopsis
Consolidated sales during the quarter under review touched a record high at Rs 2766 crore, which is an increase of 26% over the year-ago period. Total expenses last quarter rose 13% to Rs 2473 crore. Operating quarter in the period more than doubled to Rs 507 crore.
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JK Tyres & Industries Thursday reported consolidated net profit of Rs 230.46 crore for the third quarter ended Dec 31, 2020 on back of a strong recovery in demand in the automotive space aided by a favourable festive season, increased consumer preference for personal mobility solutions, good monsoons and better-than-expected economic revival.
Shares of tyre companies hogged the limelight in Wednesday s session and rallied up to 15 per cent on the BSE after Ceat reported a strong operational performance for the quarter ended December 2020 (Q3FY21). Ceat, on Tuesday, said that in Q3FY21, its Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved by 460 basis points (bps) to 15.3 per cent over the previous year quarter. The stock of the auto tyres and rubber products company hit a 52-week high of Rs 1,352 today, having surged 12 per cent in the past two trading days, post its Q3 results. The company’s consolidated net profit more-than-doubled to Rs 132 crore in Q3FY21 from Rs 53 crore in Q3FY20. This quarter’s growth has been achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments. The replacement market has been buoyant of consumer preference in personal mobility and strong demand.
Investors dragged their feet over further bullish bets on the market given emerging concerns over a stuttering global economic recovery in the near term.